Attractive stocks have exceptional fundamentals. In the case of Acorn International, Inc. (NYSE:ATV), there's is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Acorn International here.
Flawless balance sheet with outstanding track record
ATV delivered a bottom-line expansion of 91% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 42%, which paints a buoyant picture for the company. ATV'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 ATV has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ATV currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Acorn International, I've compiled three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ATV’s future growth? Take a look at our free research report of analyst consensus for ATV’s outlook.
- Valuation: What is ATV 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 ATV is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ATV? 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.