SHARKNINJA INC (NYSE:SN) Emerges as a Top Affordable Growth Candidate

Investors looking for growth chances at sensible prices often use screening methods that find companies with good expansion possibilities that have not yet become too expensive. The "Affordable Growth" method focuses on stocks showing strong growth paths while keeping good basic health and profit measures, all at price levels that do not assume too much from the future. This system helps investors prevent paying too much for growth while still finding companies with significant expansion possibilities.

SHARKNINJA INC (NYSE:SN) appears as an interesting candidate from this screening method, achieving a good 7 out of 10 in ChartMill's basic rating system. The global product design and technology company, recognized for its Shark and Ninja branded home goods, shows the balanced qualities that affordable growth investors usually look for.

Growth Path

The company's growth story is notable as especially strong, with both past performance and future estimates supporting the investment idea. Recent financial outcomes display good momentum in important growth measures:

• Revenue rose by 18.87% over the last year, with an average yearly growth rate of 14.05% over recent years
• Earnings per share increased by 20.92% in the last year, following a 9.32% average yearly growth rate
• Future estimates predict EPS growth of 15.81% and revenue growth of 10.48% each year

This steady above-average growth across different periods shows the company has effectively grown its market place and product lines. The quickening in EPS growth from past trends to future estimates points to better operational effectiveness together with top-line growth.

Valuation Check

SN's valuation shows a notable profile that balances growth possibility with sensible pricing. The stock trades at a P/E ratio of 18.46, which seems moderately priced next to both industry similar companies and wider market indicators:

• The current P/E ratio is a bit higher than the industry average of 12.06 but much lower than the S&P 500's 25.47
• Future P/E of 14.38 looks good next to the S&P 500's 34.42 while matching industry averages
• The PEG ratio, which changes for growth estimates, suggests the stock could be fairly valued considering its growth path

While some valuation measures like Enterprise Value to EBITDA show the company trading higher than many industry similar companies, the full valuation picture indicates investors are not paying too high a price for the company's growth possibility. This balanced valuation is important for the affordable growth method, as it allows space for multiple growth while reducing downside chance.

Profit and Money Health

Beyond growth and valuation, SN shows ability in profit and money health that supports its lasting growth story. The company gets an 8/10 profit rating, showing:

• Return on Assets of 11.56% and Return on Equity of 23.87%, both placing in the top group of industry similar companies
• Good profit margins of 9.45% and operating margins of 12.86% that do better than most competitors
• Steady past profit with positive earnings and operating cash flow during the last five years

Money health gets a good 7/10, supported by:

• A strong Altman-Z score of 5.39, showing low bankruptcy chance and doing better than 82% of industry similar companies
• Controllable debt levels with a debt-to-equity ratio of 0.29 and debt-to-free-cash-flow of 1.90 years
• Enough cash flow measures that, while not outstanding, are sufficient given the company's good solvency and profit

These profit and health features provide the base for lasting growth, making sure the company can pay for expansion without too much money chance, a key point for growth investors worried about longevity.

The full basic study available through ChartMill's detailed report gives more understanding of these measures and their meanings for investment thought.

For investors curious about finding more companies that match this affordable growth description, the set Affordable Growth screen offers other choices meeting similar needs of good growth, fair valuation, and solid basic health and profit.

Disclaimer: This article presents factual information for educational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.