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TCI Express Limited (NSE:TCIEXP) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of TCIEXP, it is a financially-sound company with an impressive history and an optimistic future outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on TCI Express here.
High growth potential with solid track record
TCIEXP is an attractive stock for growth-seeking investors, with an expected earnings growth of 20% in the upcoming year underlying the notable 28% return on equity over the next few years leading up to 2022. Over the past few years, TCIEXP has demonstrated a proven ability to generate robust returns of 27% Unsurprisingly, TCIEXP surpassed the Logistics industry return of 17%, which gives us more confidence of the company's capacity to drive earnings going forward.
TCIEXP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TCIEXP manages its cash and cost levels well, which is a key determinant of the company’s health. TCIEXP's has produced operating cash levels of 8.51x total debt over the past year, which implies that TCIEXP's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For TCI Express, I've compiled three relevant factors you should look at:
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Valuation: What is TCIEXP 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 TCIEXP is currently mispriced by the market.
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Dividend Income vs Capital Gains: Does TCIEXP 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 TCIEXP as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TCIEXP? 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 editorial-team@simplywallst.com. 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.