Yandex N.V. (NASDAQ:YNDX): A Fundamentally Attractive Investment
Yandex N.V. (NASDAQ:YNDX) 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 YNDX, it is a financially-sound company with an impressive history and a buoyant future outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Yandex here.
Solid track record with excellent balance sheet
Investors in search of impressive top-line expansion should look no further than YNDX, with its expected 65% revenue growth in the upcoming year. This underlies the notable 20% return on equity over the next few years leading up to 2021. Over the past few years, YNDX has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 21% return to shareholders, which paints a buoyant picture for the company.
YNDX’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. YNDX seems to have put its debt to good use, generating operating cash levels of 1.3x 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 Yandex, I’ve compiled three pertinent factors you should look at:
Valuation: What is YNDX 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 YNDX is currently mispriced by the market.
Dividend Income vs Capital Gains: Does YNDX 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 YNDX as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of YNDX? 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.
