In This Article:
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Navneet Education Limited (NSE:NAVNETEDUL), it is a financially-healthy company with a a strong history of dividend payments and a excellent growth outlook. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Navneet Education here.
Excellent balance sheet with reasonable growth potential and pays a dividend
NAVNETEDUL’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to more than double in the upcoming year. This is expected to flow down into an impressive return on equity of 23% over the next couple of years. NAVNETEDUL’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 NAVNETEDUL manages its cash and cost levels well, which is an important determinant of the company’s health. With a debt-to-equity ratio of 32%, NAVNETEDUL’s debt level is reasonable. This means that NAVNETEDUL’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt.
NAVNETEDUL is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Navneet Education, there are three pertinent factors you should look at:
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Historical Performance: What has NAVNETEDUL’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Valuation: What is NAVNETEDUL 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 NAVNETEDUL is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NAVNETEDUL? 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.