Attractive stocks have exceptional fundamentals. In the case of The E.W. Scripps Company (NASDAQ:SSP), there’s has a a strong track record of performance and an optimistic growth outlook not yet priced into the stock. 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 E.W. Scripps here.
Good value with reasonable growth potential
SSP is an attractive stock for growth-seeking investors, with an expected earnings growth of 53% in the upcoming year, bolstered by its outstanding cash-generating ability, as analysts predict its operating cash flows will more than double over the same time period. This is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. Over the past few years, SSP has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, SSP also outperformed its industry, which delivered a growth of 43%. This is what investors like to see!
SSP’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of SSP’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the media industry, SSP is also trading below its peers of similar sizes in terms of their assets. This further reaffirms that SSP is potentially undervalued.
For E.W. Scripps, I’ve compiled three key factors you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Dividend Income vs Capital Gains: Does SSP return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from SSP as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SSP? 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 email@example.com.