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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Glu Mobile Inc. (NASDAQ:GLUU) due to its excellent fundamentals in more than one area. GLUU is a company with strong financial health as well as an optimistic 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 Glu Mobile here.
Flawless balance sheet with high growth potential
GLUU is an attractive stock for growth-seeking investors, with an expected earnings growth of 76% in the upcoming year which is expected to flow into an impressive return on equity of 30% over the next couple of years. GLUU is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that GLUU has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at GLUU’s capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For Glu Mobile, there are three fundamental aspects you should further research:
- Historical Performance: What has GLUU’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 GLUU 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 GLUU is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GLUU? 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 email@example.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.