Qiwi plc (NASDAQ:QIWI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of QIWI, it is a financially-robust company with a strong history and an optimistic future 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, read the full report on Qiwi here.
Flawless balance sheet with high growth potential
Investors seeking high cash growth potential should consider QIWI, with forecasted operating cash flow growth of 91.30%. This underlies the notable 32.15% return on equity over the next few years leading up to 2021. QIWI delivered a bottom-line expansion of 25.52% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did QIWI outperformed its past performance, its growth also exceeded the IT industry expansion, which generated a 15.34% earnings growth. This is an notable feat for the company.
QIWI’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that QIWI manages its cash and cost levels well, which is an important determinant of the company’s health. Looking at QIWI’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Qiwi, I’ve compiled three essential aspects you should further research:
- Valuation: What is QIWI 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 QIWI is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does QIWI 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 QIWI as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of QIWI? 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 pass 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.