Yahoo Finance Why Canada Goose Holdings Inc (TSE:GOOS) Is An Attractive Stock On Right Now
Canada Goose Holdings Inc (TSX:GOOS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of GOOS, it is a financially-robust company with an impressive history and a excellent future outlook. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Canada Goose Holdings here.
Outstanding track record with high growth potential
Investors in search of impressive top-line expansion should look no further than GOOS, with its expected 52.65% revenue growth in the upcoming year. This is expected to flow down into an impressive return on equity of 36.01% over the next couple of years. In the past couple of years, GOOS has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 39.43%, which is an optimistic signal for the future.
GOOS 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. GOOS appears to have made good use of debt, producing operating cash levels of 0.92x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Canada Goose Holdings, I’ve put together three important factors you should further examine:
Valuation: What is GOOS 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 GOOS is currently mispriced by the market.
Dividend Income vs Capital Gains: Does GOOS 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 GOOS as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GOOS? 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 pass 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.
