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Why CTT - Correios De Portugal, S.A. (ELI:CTT) Could Be Your Next Investment

Simply Wall St

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Attractive stocks have exceptional fundamentals. In the case of CTT - Correios De Portugal, S.A. (ELI:CTT), there's is a company with impressive financial health as well as a buoyant future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on CTT - Correios De Portugal here.

Adequate balance sheet with reasonable growth potential

Investors in search for stocks with room to flourish should look no further than CTT, with its expected earnings growth of 28% underlying the notable 26% return on equity over the next few years leading up to 2022. With a debt-to-equity ratio of 25%, CTT’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. CTT seems to have put its debt to good use, generating operating cash levels of 0.98x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

ENXTLS:CTT Past and Future Earnings, July 1st 2019

Next Steps:

For CTT - Correios De Portugal, I've put together three essential aspects you should further research:

  1. Historical Performance: What has CTT's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is CTT 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 CTT is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CTT? 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 editorial-team@simplywallst.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.