I’ve been keeping an eye on 58com Inc (NYSE:WUBA) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe WUBA has a lot to offer. Basically, it is a company with robust financial health as well as an optimistic future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on 58.com here.
Excellent balance sheet with reasonable growth potential
WUBA’s outstanding revenue growth of 51% forecasted for the near future is certainly eye-catching for investors on the hunt for growth, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by 63% next year. This indicates that revenue is driven by high-quality cash from WUBA’s day-to-day business as opposed to one-off income. WUBA’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 WUBA has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. WUBA appears to have made good use of debt, producing operating cash levels of 3.27x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For 58.com, I’ve put together three fundamental factors you should look at:
- Historical Performance: What has WUBA’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 WUBA 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 WUBA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WUBA? 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 email@example.com.