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CTT – Correios De Portugal SA (ELI:CTT): Commentary On Fundamentals

Attractive stocks have exceptional fundamentals. In the case of CTT – Correios De Portugal SA (ELI:CTT), there’s is a company with strong financial health as well as a excellent growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on CTT – Correios De Portugal here.

Adequate balance sheet with reasonable growth potential

One reason why investors are attracted to CTT is its earnings growth potential in the near future of 26% underlying the notable 25% return on equity over the next few years leading up to 2021. CTT’s debt-to-equity ratio stands at 3.1%, which means its debt level is rather small. CTT has plenty of financial flexibility, without large debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. CTT’s has produced operating cash levels of 21.51x total debt over the past year, which implies that CTT’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTLS:CTT Future Profit December 10th 18

Next Steps:

For CTT – Correios De Portugal, there are three important factors you should further research:

  1. Historical Performance: What has CTT’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 CTT 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 CTT is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CTT? 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.