Is iCar Asia Limited (ASX:ICQ) Potentially Underrated?
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 iCar Asia Limited (ASX:ICQ), it is a company with strong financial health as well as a excellent future 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, take a look at the report on iCar Asia here.
Flawless balance sheet with high growth potential
One reason why investors are attracted to ICQ is its notable earnings growth potential in the near future of 59%. Earnings growth is paired with an eye-catching top-line trajectory of 99%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. ICQ’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 indicates that ICQ has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ICQ currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. ICQ 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.
Next Steps:
For iCar Asia, there are three pertinent factors you should further research:
Historical Performance: What has ICQ’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.
Valuation: What is ICQ 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 ICQ is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ICQ? 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.
