These Factors Make BLS International Services Limited (NSE:BLS) An Interesting Investment

In This Article:

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 BLS International Services Limited (NSE:BLS), it is a financially-healthy company with an impressive track record and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on BLS International Services here.

Outstanding track record with high growth potential

BLS delivered a bottom-line expansion of 41% in the prior year, with its most recent 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%. which paints a buoyant picture for the company.

NSEI:BLS Future Profit October 12th 18
NSEI:BLS Future Profit October 12th 18

BLS 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. BLS’s has produced operating cash levels of 0.51x total debt over the past year, which implies that BLS’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NSEI:BLS Historical Debt October 12th 18
NSEI:BLS Historical Debt October 12th 18

Next Steps:

For BLS International Services, there are three essential aspects you should further research:

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

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

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