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I've been keeping an eye on CoStar Group, Inc. (NASDAQ:CSGP) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CSGP has a lot to offer. Basically, it is a company with great financial health as well as a a strong track record 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, read the full report on CoStar Group here.
Flawless balance sheet with solid track record
CSGP delivered a bottom-line expansion of 94% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did CSGP outperformed its past performance, its growth also surpassed the Professional Services industry expansion, which generated a 13% earnings growth. This is an optimistic signal for the future. CSGP's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that CSGP has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Looking at CSGP's capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$17b market cap company. CSGP has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For CoStar Group, I've put together three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for CSGP’s future growth? Take a look at our free research report of analyst consensus for CSGP’s outlook.
- Valuation: What is CSGP 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 CSGP is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CSGP? 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 firstname.lastname@example.org. 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.