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An Examination Of Medica Group Plc (LON:MGP)

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Medica Group Plc (LON:MGP) due to its excellent fundamentals in more than one area. MGP is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Medica Group here.

Outstanding track record with flawless balance sheet

Over the past year, MGP has grown its earnings by 70%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 24% return to shareholders, which is an notable feat for the company. MGP's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MGP appears to have made good use of debt, producing operating cash levels of 0.81x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:MGP Income Statement, September 2nd 2019
LSE:MGP Income Statement, September 2nd 2019

Next Steps:

For Medica Group, I've compiled three fundamental factors you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for MGP’s future growth? Take a look at our free research report of analyst consensus for MGP’s outlook.

  2. Valuation: What is MGP 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 MGP is currently mispriced by the market.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.