I’ve been keeping an eye on CoStar Group, Inc. (NASDAQ:CSGP) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CSGP has a lot to offer. Basically, it is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on CoStar Group here.
Flawless balance sheet with solid track record
Over the past year, CSGP has grown its earnings by 94%, with its most recent figure exceeding its annual average over the past five years. Not only did CSGP outperformed its past performance, its growth also surpassed the Professional Services industry expansion, which generated a 13% earnings growth. This paints a buoyant picture for the company. CSGP’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Investors should not worry about CSGP’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$18b market cap company. CSGP has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
Next Steps:
For CoStar Group, I’ve put together three pertinent aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CSGP’s future growth? Take a look at our free research report of analyst consensus for CSGP’s outlook.
- Valuation: What is CSGP 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 CSGP is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CSGP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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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.