Why Fundamental Investors Love SP Plus Corporation (NASDAQ:SP)
Attractive stocks have exceptional fundamentals. In the case of SP Plus Corporation (NASDAQ:SP), there’s is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on SP Plus here.
Solid track record with adequate balance sheet
In the previous year, SP has ramped up its bottom line by 27.8%, with its latest earnings level surpassing its average level over the last five years. Not only did SP outperformed its past performance, its growth also exceeded the Commercial Services industry expansion, which generated a 10.9% earnings growth. This paints a buoyant picture for the company. SP’s debt-to-equity ratio stands at 36.6%, which means its debt level is acceptable. 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. SP seems to have put its debt to good use, generating operating cash levels of 0.34x 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.
Next Steps:
For SP Plus, there are three important factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for SP’s future growth? Take a look at our free research report of analyst consensus for SP’s outlook.
Valuation: What is SP 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 SP is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SP? 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 editorial-team@simplywallst.com.
