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PPDAI Group Inc (NYSE:PPDF): The Best Of Both Worlds

PPDAI Group Inc (NYSE:PPDF) 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 PPDF, it is a company with strong financial health as well as a buoyant growth 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 PPDAI Group here.

High growth potential with excellent balance sheet

PPDF’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 implies that PPDF manages its cash and cost levels well, which is an important determinant of the company’s health. PPDF seems to have put its debt to good use, generating operating cash levels of 4.06x 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.

NYSE:PPDF Future Profit August 22nd 18
NYSE:PPDF Future Profit August 22nd 18

Next Steps:

For PPDAI Group, I’ve put together three fundamental factors you should further examine:

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  1. Historical Performance: What has PPDF’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.

  2. Valuation: What is PPDF 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 PPDF is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PPDF? 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.