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Yandex N.V. (NASDAQ:YNDX) 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 YNDX, it is a financially-sound company with a strong track record and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Yandex here.
Flawless balance sheet with solid track record
One reason why investors are attracted to YNDX is its notable earnings growth potential in the near future of 21%. Earnings growth is paired with an eye-catching top-line trajectory of 67%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. YNDX delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 22%, which is an optimistic signal for the future.
YNDX's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that YNDX manages its cash and cost levels well, which is a key determinant of the company’s health. YNDX currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$13b market cap company. YNDX has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Yandex, there are three fundamental aspects you should look at:
- Valuation: What is YNDX 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 YNDX is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does YNDX 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 YNDX as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of YNDX? 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 firstname.lastname@example.org. 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.