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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Sylogist Ltd. (CVE:SYZ) due to its excellent fundamentals in more than one area. SYZ is a company with great financial health as well as a an impressive 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 Sylogist here.
Outstanding track record with flawless balance sheet
Over the past year, SYZ has grown its earnings by 42%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 30% return to shareholders, which is an optimistic signal for the future. SYZ's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that SYZ has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. SYZ currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, 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 Sylogist, I've put together three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for SYZ’s future growth? Take a look at our free research report of analyst consensus for SYZ’s outlook.
- Valuation: What is SYZ 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 SYZ is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SYZ? 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.