Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Intelligent Systems Corporation (NYSEMKT:INS) due to its excellent fundamentals in more than one area. INS 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. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Intelligent Systems here.
Flawless balance sheet with outstanding 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. This strong performance generated a robust double-digit return on equity of 24%, which is an notable feat for the company. INS’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 INS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. INS currently 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. INS 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.
For Intelligent Systems, I’ve put together three pertinent aspects 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!
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 firstname.lastname@example.org. 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.