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August Fundamental Stock Pick: Spin Master Corp (TSE:TOY)

Saundra Reilly

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 Spin Master Corp (TSE:TOY), it is a company with great financial health as well as a an impressive history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Spin Master here.

Flawless balance sheet with proven track record

TOY delivered a satisfying double-digit returns of 30.8% in the most recent year Unsurprisingly, TOY surpassed the Leisure industry return of 14.0%, which gives us more confidence of the company’s capacity to drive earnings going forward. TOY’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. TOY seems to have put its debt to good use, generating operating cash levels of 7.07x 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.

TSX:TOY Income Statement Export August 29th 18

Next Steps:

For Spin Master, I’ve put together three important factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for TOY’s future growth? Take a look at our free research report of analyst consensus for TOY’s outlook.
  2. Valuation: What is TOY 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 TOY is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TOY? 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.