Investors looking for growth chances at fair prices often use screening methods that find companies showing good expansion possibility without high valuations. The "Affordable Growth" method focuses on stocks with strong growth features, good financial condition, and acceptable profit measures, all while keeping prices that do not seem high. This system helps investors prevent paying too much for growth while still finding companies with notable expansion possibility.
SEZZLE INC (NASDAQ:SEZL) runs a digital payment system that allows bank-to-bank moves between shoppers and companies, providing point-of-sale financing and installment payment choices. The company's main product lets shoppers divide purchases into four payments over six weeks, giving flexible options to standard credit while working for both online and physical stores through its Sezzle Virtual Card offering.
Growth Measures
The company shows very good growth features that match well with affordable growth screening rules. Growth is still most important for this method since enlarging companies usually see rising earnings and income, which can push stock price gains over time.
- Income growth of 70.14% over the last year is much higher than industry standards
- Past income growth averaging 76.56% over recent years shows continued expansion ability
- Estimated future income growth of 43.44% each year points to continued good performance
- Earnings per share growth of 17.05% in the past year shows profit getting better
- Forecasted EPS growth of 24.15% each year shows speeding up earnings movement
Price Assessment
SEZZLE INC shows a balanced price view that meets the affordable growth screen's need for fair costing. Price is important in this method because even very good companies can become bad investments if bought at too high prices.
- Price-to-earnings ratio of 18.71 is lower than the S&P 500 average of 26.28
- Forward P/E ratio of 13.33 looks good compared to market averages
- PEG ratio points to suitable price when considering growth forecasts
- Enterprise value to EBITDA and price-to-free cash flow ratios match with industry similar companies
- Current price looks fair given the company's growth path and profit
Financial Condition and Profit
The company keeps good financial condition with acceptable profit measures, both key parts for affordable growth investing since they lower failure risk and make sure lasting operations.
- Altman-Z score of 8.31 shows very small failure risk and does better than 91.75% of industry similar companies
- Current ratio and quick ratio of 3.51 show very good cash position
- Return on assets of 29.83% and return on equity of 80.20% are much higher than industry averages
- Profit margin of 28.13% and operating margin of 37.03% are in the top group of the financial services industry
- Gross margin of 84.29% shows good price control and cost handling
Investment Points
While SEZZLE INC shows interesting features for affordable growth investors, several items need thought. The company works in the competitive fintech area, where technology shifts and rule changes can affect business plans. The debt-to-equity ratio of 1.00 shows more borrowing than some investors may like, though the company's good cash flow production helps ease this worry. The expected slowing in income growth from past levels to forecasted rates, while still strong, suggests investors should watch if the company can keep its competitive strengths.
For investors wanting to look for similar affordable growth chances, more screening outcomes can be seen using our Affordable Growth Stock Screener. This tool allows more changes based on particular growth, price, condition, and profit settings to find other possible picks fitting this investment method.
Disclaimer: This article gives true information and study for learning only and does not make investment guidance, suggestion, or backing of any security. Investors should do their own study and talk with money advisors before making investment choices. Past results do not promise future outcomes, and all investments have risk including possible loss of original money.
