Why We Think Paradox Interactive AB (publ) (STO:PDX) Could Be Worth Looking At
I've been keeping an eye on Paradox Interactive AB (publ) (STO:PDX) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe PDX has a lot to offer. Basically, it is a company with impressive financial health as well as a excellent 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, read the full report on Paradox Interactive here.
Flawless balance sheet with high growth potential
One reason why investors are attracted to PDX is its notable earnings growth potential in the near future of 22%. This growth in the bottom-line is bolstered by an impressive top-line expansion of 56% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. PDX's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that PDX manages its cash and cost levels well, which is a crucial insight into the health of the company. Investors should not worry about PDX’s debt levels because the company has none! This implies that the company is running its operations purely on off equity 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.
Next Steps:
For Paradox Interactive, there are three key factors you should look at:
Historical Performance: What has PDX'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.
Valuation: What is PDX 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 PDX is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PDX? 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.
