Yahoo Finance Why GrubHub Inc (NYSE:GRUB) Is Truly A Standout Investment
GrubHub Inc (NYSE:GRUB) 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 GRUB, it is a financially-healthy company with an impressive track record and a excellent growth outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on GrubHub here.
High growth potential with excellent balance sheet
Investors in search of impressive top-line expansion should look no further than GRUB, with its expected 68.49% revenue growth in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by 78.73% next year. This indicates that revenue is driven by high-quality cash from GRUB’s day-to-day business as opposed to one-off income. GRUB delivered a bottom-line expansion of 95.39% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, GRUB also outperformed its industry, which delivered a growth of 17.61%. This is an notable feat for the company.
GRUB is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. GRUB appears to have made good use of debt, producing operating cash levels of 1.17x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For GrubHub, there are three relevant aspects you should further examine:
Valuation: What is GRUB 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 GRUB is currently mispriced by the market.
Dividend Income vs Capital Gains: Does GRUB 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 GRUB as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GRUB? 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.
