Investors seeking growth at a reasonable cost should explore NASDAQ:TSLA.

Our stock screener has spotted TESLA INC (NASDAQ:TSLA) as a growth stock which is not overvalued. NASDAQ:TSLA is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Evaluating Growth: NASDAQ:TSLA

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:TSLA was assigned a score of 7 for growth:

• The Earnings Per Share has been growing by 103.90% on average over the past years. This is a very strong growth
• The Revenue has been growing by 31.78% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, TSLA will show a very strong growth in Earnings Per Share. The EPS will grow by 27.82% on average per year.
• Based on estimates for the next years, TSLA will show a quite strong growth in Revenue. The Revenue will grow by 18.06% on average per year.

Valuation Examination for NASDAQ:TSLA

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:TSLA has achieved a 5 out of 10:

• 68.42% of the companies in the same industry are more expensive than TSLA, based on the Price/Earnings ratio.
• TSLA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSLA is cheaper than 68.42% of the companies in the same industry.
• 63.16% of the companies in the same industry are more expensive than TSLA, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSLA indicates a rather cheap valuation: TSLA is cheaper than 81.58% of the companies listed in the same industry.
• The excellent profitability rating of TSLA may justify a higher PE ratio.
• TSLA's earnings are expected to grow with 22.51% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Health for NASDAQ:TSLA?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:TSLA, the assigned 7 reflects its health status:

• TSLA has an Altman-Z score of 14.68. This indicates that TSLA is financially healthy and has little risk of bankruptcy at the moment.
• TSLA has a better Altman-Z score (14.68) than 100.00% of its industry peers.
• 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.
• The Debt to FCF ratio of TSLA (2.29) is better than 97.37% of its industry peers.
• A Debt/Equity ratio of 0.08 indicates that TSLA is not too dependend on debt financing.
• The Debt to Equity ratio of TSLA (0.08) is better than 81.58% of its industry peers.
• TSLA has a Current Ratio of 2.02. This indicates that TSLA is financially healthy and has no problem in meeting 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 71.05% of the companies in the same industry.
• TSLA has a better Quick ratio (1.61) than 76.32% of its industry peers.

Exploring NASDAQ:TSLA's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:TSLA has earned a 8 out of 10:

• The Return On Assets of TSLA (5.84%) is better than 89.47% of its industry peers.
• TSLA has a better Return On Equity (9.78%) than 78.95% of its industry peers.
• TSLA has a Return On Invested Capital of 6.62%. This is amongst the best in the industry. TSLA outperforms 89.47% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for TSLA is above the industry average of 9.10%.
• The last Return On Invested Capital (6.62%) for TSLA is well below the 3 year average (11.83%), which needs to be investigated, but indicates that TSLA had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 7.30%, TSLA belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 7.94%, TSLA belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
• In the last couple of years the Operating Margin of TSLA has grown nicely.
• TSLA has a better Gross Margin (17.86%) than 68.42% of its industry peers.
• In the last couple of years the Gross Margin of TSLA has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of TSLA contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.