Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Tilly’s Inc (NYSE:TLYS) due to its excellent fundamentals in more than one area. TLYS is a company with great financial health as well as a a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Tilly’s here.
Flawless balance sheet with proven track record
Over the past few years, TLYS has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did TLYS outperformed its past performance, its growth also exceeded the Specialty Retail industry expansion, which generated a 28% earnings growth. This is an notable feat for the company. TLYS’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 indicates that TLYS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Investors should not worry about TLYS’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. TLYS 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 Tilly’s, I’ve compiled three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for TLYS’s future growth? Take a look at our free research report of analyst consensus for TLYS’s outlook.
- Valuation: What is TLYS 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 TLYS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TLYS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.