Stock Analysis

A Spotlight On Radiant Logistics, Inc.'s (NYSEMKT:RLGT) Fundamentals

NYSEAM:RLGT
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Radiant Logistics, Inc. (NYSEMKT:RLGT) 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 RLGT, it is a financially-robust company with an impressive track record and a buoyant growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Radiant Logistics here.

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Flawless balance sheet and good value

Over the past few years, RLGT has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did RLGT outperformed its past performance, its growth also exceeded the Logistics industry expansion, which generated a 40% earnings growth. This is what investors like to see!

AMEX:RLGT Future Profit February 10th 19
AMEX:RLGT Future Profit February 10th 19

RLGT'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 RLGT manages its cash and cost levels well, which is a key determinant of the company’s health. RLGT seems to have put its debt to good use, generating operating cash levels of 0.26x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

AMEX:RLGT Historical Debt February 10th 19
AMEX:RLGT Historical Debt February 10th 19

Next Steps:

For Radiant Logistics, there are three key aspects you should further examine:

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

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

About NYSEAM:RLGT

Radiant Logistics

Operates as a third-party logistics company, provides technology-enabled global transportation and value-added logistics solutions primarily in the United States and Canada.

Flawless balance sheet and good value.

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