Brief Commentary On USU Software AG’s (ETR:OSP2) Fundamentals
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on USU Software AG (ETR:OSP2) due to its excellent fundamentals in more than one area. OSP2 is a financially-robust company with a an impressive track record of dividend payments and a buoyant growth outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on USU Software here.
Flawless balance sheet with reasonable growth potential and pays a dividend
OSP2’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 an important determinant of the company’s health. Looking at OSP2’s capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
OSP2 rewards its shareholders with attractive dividend yield, exceeding the low-risk savings rate, which is able to compensate investors for taking on the risk of holding a risky stock over a riskless asset.
Next Steps:
For USU Software, I’ve put together three important factors you should further research:
Historical Performance: What has OSP2’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.
Valuation: What is OSP2 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 OSP2 is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OSP2? 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.
