Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Opera Limited (NASDAQ:OPRA) due to its excellent fundamentals in more than one area. OPRA is a company with robust financial health as well as an optimistic future outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Opera here.
High growth potential with excellent balance sheet
One reason why investors are attracted to OPRA is its notable earnings growth potential in the near future of 52%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 58% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. OPRA’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. OPRA seems to have put its debt to good use, generating operating cash levels of 6.41x 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.
For Opera, I’ve compiled three essential factors you should further examine:
- Historical Performance: What has OPRA’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 OPRA 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 OPRA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OPRA? 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 email@example.com.