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Technology One Limited (ASX:TNE) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TNE, it is a financially-healthy company with a great track record and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Technology One here.
Outstanding track record with excellent balance sheet
In the previous year, TNE has ramped up its bottom line by 36%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 80%. which is what investors like to see!
Looking at TNE's capital structure, the company has very trivial amounts of debt on its balance sheet. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Technology One, I've put together three pertinent aspects you should further research:
- Valuation: What is TNE 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 TNE is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does TNE 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 TNE as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TNE? 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.