Yahoo Finance Should You Consider Record plc (LON:REC)?
Record plc (LON:REC) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of REC, it is a company with great financial health as well as a a strong history of performance. 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 Record here.
Flawless balance sheet with proven track record
Over the past few years, REC has demonstrated a proven ability to generate robust returns of 23% Unsurprisingly, REC surpassed the Capital Markets industry return of 11%, which gives us more confidence of the company’s capacity to drive earnings going forward. REC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that REC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at REC’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Record, there are three essential aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for REC’s future growth? Take a look at our free research report of analyst consensus for REC’s outlook.
Valuation: What is REC 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 REC is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of REC? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
