Should Glu Mobile Inc. (NASDAQ:GLUU) Be Your Next Stock Pick?
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Glu Mobile Inc. (NASDAQ:GLUU) 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 GLUU, it is a company with strong financial health as well as an optimistic future 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 Glu Mobile here.
Flawless balance sheet with high growth potential
One reason why investors are attracted to GLUU is its earnings growth potential in the near future of 73% underlying the notable 29% return on equity over the next few years leading up to 2022. GLUU'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 implies that GLUU manages its cash and cost levels well, which is a crucial insight into the health of the company. GLUU currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. GLUU 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.
Next Steps:
For Glu Mobile, I've compiled three pertinent factors you should further examine:
Historical Performance: What has GLUU'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 GLUU 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 GLUU is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GLUU? 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 editorial-team@simplywallst.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.
