I've been keeping an eye on Educational Development Corporation (NASDAQ:EDUC) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EDUC has a lot to offer. Basically, it is a company with great financial health as well as a a great history of performance. 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 Educational Development here.
Proven track record with adequate balance sheet
EDUC has a strong track record of performance. In the previous year, EDUC delivered an impressive double-digit return of 27% Not surprisingly, EDUC outperformed its industry which returned 23%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. EDUC'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 suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. EDUC appears to have made good use of debt, producing operating cash levels of 0.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Educational Development, I've compiled three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for EDUC’s future growth? Take a look at our free research report of analyst consensus for EDUC’s outlook.
- Valuation: What is EDUC 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 EDUC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EDUC? 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.