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TeamLease Services Limited (NSE:TEAMLEASE) 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 TEAMLEASE, it is a financially-healthy company with a great track record and a excellent future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on TeamLease Services here.
Flawless balance sheet with high growth potential
TEAMLEASE is an attractive stock for growth-seeking investors, with an expected earnings growth of 26% in the upcoming year underlying the notable 27% return on equity over the next few years leading up to 2022. Over the past few years, TEAMLEASE has demonstrated a proven ability to generate robust returns of 9.5% Unsurprisingly, TEAMLEASE surpassed the industry return of 7.4%, which gives us more confidence of the company's capacity to drive earnings going forward.
TEAMLEASE's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. TEAMLEASE appears to have made good use of debt, producing operating cash levels of 7.45x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For TeamLease Services, I've compiled three relevant aspects you should look at:
- Valuation: What is TEAMLEASE 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 TEAMLEASE is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does TEAMLEASE 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 TEAMLEASE as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TEAMLEASE? 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 firstname.lastname@example.org. 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.