Yahoo Finance Does The Data Make Tech Data Corporation (NASDAQ:TECD) An Attractive Investment?
Tech Data Corporation (NASDAQ:TECD) 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 TECD, it is a financially-healthy company with a strong track record of performance, trading at a great value. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Tech Data here.
Good value with proven track record
TECD delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, TECD also outperformed its industry, which delivered a growth of 59%. This is what investors like to see! TECD 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 a crucial insight into the health of the company. TECD's has produced operating cash levels of 0.34x total debt over the past year, which implies that TECD's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
TECD is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the tech industry, TECD is also trading below its peers, relative to earnings generated. This bolsters the proposition that TECD's price is currently discounted.
Next Steps:
For Tech Data, there are three relevant factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for TECD’s future growth? Take a look at our free research report of analyst consensus for TECD’s outlook.
Dividend Income vs Capital Gains: Does TECD 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 TECD as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TECD? 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.
