Advertisement
UK markets open in 3 hours 9 minutes
  • NIKKEI 225

    37,763.77
    -696.31 (-1.81%)
     
  • HANG SENG

    17,254.77
    +53.50 (+0.31%)
     
  • CRUDE OIL

    82.83
    +0.02 (+0.02%)
     
  • GOLD FUTURES

    2,321.70
    -16.70 (-0.71%)
     
  • DOW

    38,460.92
    -42.77 (-0.11%)
     
  • Bitcoin GBP

    51,666.34
    -1,798.01 (-3.36%)
     
  • CMC Crypto 200

    1,391.10
    -33.00 (-2.32%)
     
  • NASDAQ Composite

    15,712.75
    +16.11 (+0.10%)
     
  • UK FTSE All Share

    4,374.06
    -4.69 (-0.11%)
     

Brief Commentary On Next Fifteen Communications Group plc’s (LON:NFC) Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Next Fifteen Communications Group plc (AIM:NFC) due to its excellent fundamentals in more than one area. NFC is a financially-robust company with an impressive track record and an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Next Fifteen Communications Group here.

High growth potential with proven track record

Over the past few years, NFC has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did NFC outperformed its past performance, its growth also exceeded the Media industry expansion, which generated a 30.40% earnings growth. This paints a buoyant picture for the company.

AIM:NFC Future Profit Jun 13th 18
AIM:NFC Future Profit Jun 13th 18

NFC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that NFC manages its cash and cost levels well, which is a crucial insight into the health of the company. NFC’s has produced operating cash levels of 0.69x total debt over the past year, which implies that NFC’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

AIM:NFC Historical Debt Jun 13th 18
AIM:NFC Historical Debt Jun 13th 18

Next Steps:

For Next Fifteen Communications Group, I’ve compiled three essential factors you should further research:

ADVERTISEMENT
  1. Valuation: What is NFC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NFC is currently mispriced by the market.

  2. Dividend Income vs Capital Gains: Does NFC return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from NFC as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NFC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.