TPI Composites Inc (NASDAQ:TPIC) 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 TPIC, it is a financially-robust company with an impressive track record and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on TPI Composites here.
Exceptional growth potential with excellent balance sheet
Bullish market analysts are forecasting fast-growing TPIC to deliver an exceptional sales growth rate of 54.02% over the next year. This underlies the notable 24.10% return on equity over the next few years leading up to 2021. TPIC delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did TPIC outperformed its past performance, its growth also surpassed the Electrical industry expansion, which generated a 10.30% earnings growth. This is what investors like to see!
TPIC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that TPIC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. TPIC’s has produced operating cash levels of 0.46x total debt over the past year, which implies that TPIC’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For TPI Composites, I’ve put together three key aspects you should further research:
- Valuation: What is TPIC 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 TPIC is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does TPIC 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 TPIC as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TPIC? 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.