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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of CTT – Correios De Portugal, S.A. (ELI:CTT), it is a company with impressive financial health as well as a excellent growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on CTT – Correios De Portugal here.
Adequate balance sheet with reasonable growth potential
Investors in search for stocks with room to flourish should look no further than CTT, with its expected earnings growth of 25% which is expected to flow into an impressive return on equity of 29% over the next couple of years. With a debt-to-equity ratio of 3.1%, CTT’s debt level is relatively low. CTT has plenty of financial flexibility, without large debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. CTT appears to have made good use of debt, producing operating cash levels of 21.51x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For CTT – Correios De Portugal, I’ve compiled three key factors you should further research:
- Historical Performance: What has CTT’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is CTT 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 CTT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CTT? 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. On rare occasion, data errors may occur. Thank you for reading.