Shoe Carnival, Inc. (NASDAQ:SCVL) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SCVL, it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Shoe Carnival here.
Flawless balance sheet with solid track record
In the past couple of years, SCVL has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did SCVL outperformed its past performance, its growth also exceeded the Specialty Retail industry expansion, which generated a 17% earnings growth. This is what investors like to see! SCVL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. SCVL 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. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For Shoe Carnival, there are three pertinent factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for SCVL’s future growth? Take a look at our free research report of analyst consensus for SCVL’s outlook.
- Valuation: What is SCVL 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 SCVL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SCVL? 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.