TechTarget, Inc. (NASDAQ:TTGT): Commentary On Fundamentals

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TechTarget, Inc. (NASDAQ:TTGT) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TTGT, it is a financially-healthy company with a great track record and a buoyant future 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, take a look at the report on TechTarget here.

Solid track record with excellent balance sheet

TTGT delivered a bottom-line expansion of 90% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did TTGT outperformed its past performance, its growth also exceeded the Media industry expansion, which generated a -19% earnings growth. This is an optimistic signal for the future.

NasdaqGM:TTGT Past and Future Earnings, May 3rd 2019
NasdaqGM:TTGT Past and Future Earnings, May 3rd 2019

TTGT’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 implies that TTGT manages its cash and cost levels well, which is an important determinant of the company’s health. TTGT’s has produced operating cash levels of 0.96x total debt over the past year, which implies that TTGT’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NasdaqGM:TTGT Historical Debt, May 3rd 2019
NasdaqGM:TTGT Historical Debt, May 3rd 2019

Next Steps:

For TechTarget, there are three relevant factors you should further examine:

  1. Valuation: What is TTGT 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 TTGT is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does TTGT 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 TTGT as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TTGT? 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.