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Why NamSys Inc. (CVE:CTZ) Is An Attractive Investment To Consider

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on NamSys Inc. (CVE:CTZ) due to its excellent fundamentals in more than one area. CTZ is a company with great financial health as well as a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on NamSys here.

Flawless balance sheet with solid track record

Over the past year, CTZ has grown its earnings by 34%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 36%, which is an notable feat for the company. CTZ 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 key determinant of the company’s health. CTZ currently 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. CTZ has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

TSXV:CTZ Income Statement, June 3rd 2019
TSXV:CTZ Income Statement, June 3rd 2019

Next Steps:

For NamSys, there are three important factors you should look at:

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  1. Future Outlook: What are well-informed industry analysts predicting for CTZ’s future growth? Take a look at our free research report of analyst consensus for CTZ’s outlook.

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

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