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Sky and Space Global Limited (ASX:SAS) Has Attractive Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Sky and Space Global Limited (ASX:SAS) due to its excellent fundamentals in more than one area. SAS is a company with strong financial health as well as an optimistic growth outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Sky andce Global here.

Exceptional growth potential with excellent balance sheet

SAS is an attractive stock for growth-seeking investors, with an expected earnings growth of 88% in the upcoming year. The optimistic bottom-line growth is supported by a similarly outstanding revenue growth over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. SAS’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 key determinant of the company’s health. Looking at SAS’s capital structure, the company 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. 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.

ASX:SAS Future Profit December 26th 18
ASX:SAS Future Profit December 26th 18

Next Steps:

For Sky andce Global, there are three pertinent aspects you should look at:

  1. Historical Performance: What has SAS’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.

  2. Valuation: What is SAS 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 SAS is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SAS? 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 editorial-team@simplywallst.com.

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