Yahoo Finance Why Points International Ltd. (TSE:PTS) Is An Attractive Investment To Consider
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Points International Ltd. (TSE:PTS), it is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Points International here.
Flawless balance sheet with outstanding track record
Over the past few years, PTS has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 28%, which paints a buoyant picture for the company. PTS'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 PTS manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about PTS’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. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Points International, I've compiled three pertinent factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for PTS’s future growth? Take a look at our free research report of analyst consensus for PTS’s outlook.
Valuation: What is PTS 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 PTS is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PTS? 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.
