3Pea International, Inc. (NASDAQ:TPNL) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TPNL, it is a financially-sound company with an impressive track record and an optimistic growth outlook. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on 3Pea International here.
Outstanding track record with flawless balance sheet
Investors in search for stocks with room to flourish should look no further than TPNL, with its expected earnings growth of 48%. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. In the previous year, TPNL has ramped up its bottom line by 44%, with its latest 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 29%. which is an notable feat for the company.
TPNL'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 TPNL has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. TPNL currently 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. TPNL 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 3Pea International, there are three relevant factors you should look at:
- Valuation: What is TPNL 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 TPNL is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does TPNL 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 TPNL as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TPNL? 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@example.com. 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.