In This Article:
Newgen Software Technologies Limited (NSE:NEWGEN) 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 NEWGEN, it is a company with great financial health as well as a a great track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Newgen Software Technologies here.
Outstanding track record with excellent balance sheet
NEWGEN delivered a bottom-line expansion of 44% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 22% return to shareholders, which paints a buoyant picture for the company. NEWGEN’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. NEWGEN appears to have made good use of debt, producing operating cash levels of 0.84x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Newgen Software Technologies, I’ve compiled three important aspects you should further examine:
-
Future Outlook: What are well-informed industry analysts predicting for NEWGEN’s future growth? Take a look at our free research report of analyst consensus for NEWGEN’s outlook.
-
Valuation: What is NEWGEN 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 NEWGEN is currently mispriced by the market.
-
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NEWGEN? 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.