Wonderla Holidays Limited (NSE:WONDERLA): The Best Of Both Worlds

I’ve been keeping an eye on Wonderla Holidays Limited (NSE:WONDERLA) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe WONDERLA has a lot to offer. Basically, 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. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Wonderla Holidays here.

Flawless balance sheet with high growth potential

WONDERLA is an attractive stock for growth-seeking investors, with an expected earnings growth of 23% in the upcoming year. The optimistic bottom-line growth is supported by an outstanding revenue growth of 63% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. WONDERLA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that WONDERLA has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. WONDERLA 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. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NSEI:WONDERLA Future Profit December 16th 18
NSEI:WONDERLA Future Profit December 16th 18

Next Steps:

For Wonderla Holidays, I’ve put together three relevant aspects you should look at:

  1. Historical Performance: What has WONDERLA’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.

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

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