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Why I Like Cupid Limited (NSE:CUPID)

Simply Wall St

Cupid Limited (NSE:CUPID) 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 CUPID, it is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Cupid here.

Flawless balance sheet with solid track record

In the previous year, CUPID has ramped up its bottom line by 9.6%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 25% return to shareholders, which is an notable feat for the company. CUPID's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that CUPID has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. CUPID appears to have made good use of debt, producing operating cash levels of 1.5x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NSEI:CUPID Income Statement, August 17th 2019

Next Steps:

For Cupid, there are three key aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for CUPID’s future growth? Take a look at our free research report of analyst consensus for CUPID’s outlook.
  2. Valuation: What is CUPID 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 CUPID is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CUPID? 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.