A Look At TCI Express Limited’s (NSE:TCIEXP) Exceptional Fundamentals

Attractive stocks have exceptional fundamentals. In the case of TCI Express Limited (NSE:TCIEXP), there’s is a financially-sound company with a strong history and a excellent growth outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on TCI Express here.

High growth potential with excellent balance sheet

Investors in search for stocks with room to flourish should look no further than TCIEXP, with its expected earnings growth of 22% which is expected to flow into an impressive return on equity of 28% over the next couple of years. TCIEXP delivered a satisfying double-digit returns of 30% in the most recent year Unsurprisingly, TCIEXP surpassed the Logistics industry return of 21%, which gives us more confidence of the company’s capacity to drive earnings going forward.

NSEI:TCIEXP Past and Future Earnings, March 19th 2019
NSEI:TCIEXP Past and Future Earnings, March 19th 2019

TCIEXP’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. TCIEXP seems to have put its debt to good use, generating operating cash levels of 1.8x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NSEI:TCIEXP Historical Debt, March 19th 2019
NSEI:TCIEXP Historical Debt, March 19th 2019

Next Steps:

For TCI Express, there are three pertinent factors you should further research:

  1. Valuation: What is TCIEXP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TCIEXP is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does TCIEXP return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from TCIEXP as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TCIEXP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.