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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 Navneet Education Limited (NSE:NAVNETEDUL), 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, read the full report on Navneet Education here.

Outstanding track record with high growth potential and pays a dividend

One reason why investors are attracted to NAVNETEDUL is its earnings growth potential in the near future of 26% underlying the notable 26% return on equity over the next few years leading up to 2022. Over the past year, NAVNETEDUL has grown its earnings by 20%, 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 20%. which is an notable feat for the company.

NAVNETEDUL 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 an important determinant of the company’s health. With a debt-to-equity ratio of 32%, NAVNETEDUL’s debt level is acceptable. This means that NAVNETEDUL’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt.

Next Steps:

For Navneet Education, I've put together three key factors you should look at:

1. Valuation: What is NAVNETEDUL 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 NAVNETEDUL is currently mispriced by the market.

2. Dividend Income vs Capital Gains: Does NAVNETEDUL 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 NAVNETEDUL as an investment.

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