Xunlei Limited (NASDAQ:XNET) is in the highlights and many would want to know whether now might be a good time for it to present much upside. Now trading with a market value of 1.60B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. Everyone seems to have their own opinion of this stock. But what do the numbers really say? We think it’s a great time to take a fresh look.
Xunlei Limited (NASDAQ:XNET) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For XNET, the company currently has 152.18 million of cash on the books. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 500.05 million in total assets, balanced by 124.66 million in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.
Xunlei Limited (NASDAQ:XNET) Revenue Growth Potential
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 47.16 million in total revenues. That represents a quarterly year/year change in revenues of 0.18 in sequential terms, the XNET saw sales decline by 0.14.
But what about the bottom line? After all, that’s what really matters in the end. Xunlei Limited (XNET) is intriguing when broken down to its core data. The cost of selling goods last quarter was 28.86 million, yielding a gross basic income of 18.31 million. For shareholders, given the total diluted outstanding shares of 66.45 million, this means overall earnings per share of -0.39.
Is Xunlei Limited (NASDAQ:XNET) Valuation Attractive
One should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Xunlei Limited.