Why Plus Products Inc. (CNSX:PLUS) Could Be Your Next Investment

Simply Wall St - finance.yahoo.com Posted 5 years ago
image
View photos

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Plus Products Inc. (CNSX:PLUS) due to its excellent fundamentals in more than one area. PLUS is a company with robust financial health as well as an optimistic growth outlook. 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 Plus Products here.

Excellent balance sheet with high growth potential

PLUS is an attractive stock for growth-seeking investors, with an expected earnings growth reaching triple digits in the upcoming year. The optimistic bottom-line growth is supported by a similarly outstanding revenue growth over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. PLUS'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 PLUS has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. With a debt-to-equity ratio of 36%, PLUS’s debt level is acceptable. This implies that PLUS has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt.

CNSX:PLUS Past and Future Earnings, June 22nd 2019
More

Next Steps:

For Plus Products, there are three relevant aspects you should look at:

  1. Historical Performance: What has PLUS'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.
  2. Valuation: What is PLUS 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 PLUS is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PLUS? 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 [email protected]. 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.