TESLA INC (NASDAQ:TSLA) stands out as a growth opportunity that won't break the bank.

Our stock screener has singled out TESLA INC (NASDAQ:TSLA) as an attractive growth opportunity. TSLA is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

What does the Growth looks like for TSLA

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of TSLA, the assigned 7 reflects its growth potential:

• The Earnings Per Share has been growing by 103.90% on average over the past years. This is a very strong growth
• Measured over the past years, TSLA shows a very strong growth in Revenue. The Revenue has been growing by 31.78% on average per year.
• The Earnings Per Share is expected to grow by 32.09% on average over the next years. This is a very strong growth
• Based on estimates for the next years, TSLA will show a quite strong growth in Revenue. The Revenue will grow by 19.88% on average per year.

Valuation Examination for TSLA

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. TSLA boasts a 5 out of 10:

• 70.73% of the companies in the same industry are more expensive than TSLA, based on the Price/Earnings ratio.
• Based on the Price/Forward Earnings ratio, TSLA is valued a bit cheaper than 70.73% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSLA indicates a somewhat cheap valuation: TSLA is cheaper than 70.73% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSLA indicates a rather cheap valuation: TSLA is cheaper than 82.93% of the companies listed in the same industry.
• TSLA has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as TSLA's earnings are expected to grow with 22.48% in the coming years.

ChartMill's Evaluation of Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. TSLA has received a 7 out of 10:

• An Altman-Z score of 10.41 indicates that TSLA is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 10.41, TSLA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• TSLA has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as TSLA would need 2.29 years to pay back of all of its debts.
• TSLA has a Debt to FCF ratio of 2.29. This is amongst the best in the industry. TSLA outperforms 97.56% of its industry peers.
• TSLA has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
• TSLA's Debt to Equity ratio of 0.08 is amongst the best of the industry. TSLA outperforms 85.37% of its industry peers.
• A Current Ratio of 2.02 indicates that TSLA has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 2.02, TSLA is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
• TSLA has a Quick ratio of 1.61. This is in the better half of the industry: TSLA outperforms 78.05% of its industry peers.

Assessing Profitability for TSLA

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, TSLA has achieved a 9:

• TSLA's Return On Assets of 5.84% is amongst the best of the industry. TSLA outperforms 92.68% of its industry peers.
• Looking at the Return On Equity, with a value of 9.78%, TSLA belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
• TSLA has a better Return On Invested Capital (6.62%) than 90.24% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for TSLA is above the industry average of 9.60%.
• The 3 year average ROIC (11.83%) for TSLA is well above the current ROIC(6.62%). The reason for the recent decline needs to be investigated.
• The Profit Margin of TSLA (7.30%) is better than 87.80% of its industry peers.
• TSLA has a Operating Margin of 7.94%. This is amongst the best in the industry. TSLA outperforms 85.37% of its industry peers.
• TSLA's Operating Margin has improved in the last couple of years.
• The Gross Margin of TSLA (17.86%) is better than 68.29% of its industry peers.
• In the last couple of years the Gross Margin of TSLA has grown nicely.

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Check the latest full fundamental report of TSLA for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.