Intelligent Systems Corporation (NYSEMKT:INS) 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 INS, it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Intelligent Systems here.
Flawless balance sheet with solid track record
INS delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, INS also outperformed its industry, which delivered a growth of 16%. This is an optimistic signal for the future. INS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that INS manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at INS’s capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
Next Steps:
For Intelligent Systems, I’ve compiled three fundamental factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for INS’s future growth? Take a look at our free research report of analyst consensus for INS’s outlook.
- Valuation: What is INS 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 INS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of INS? 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.