Advertisement
UK markets open in 2 hours 52 minutes
  • NIKKEI 225

    37,689.35
    -770.73 (-2.00%)
     
  • HANG SENG

    17,282.26
    +80.99 (+0.47%)
     
  • CRUDE OIL

    82.89
    +0.08 (+0.10%)
     
  • GOLD FUTURES

    2,325.20
    -13.20 (-0.56%)
     
  • DOW

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

    51,549.34
    -1,916.05 (-3.58%)
     
  • CMC Crypto 200

    1,390.33
    -33.77 (-2.37%)
     
  • NASDAQ Composite

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

    4,374.06
    -4.69 (-0.11%)
     

These Factors Make Deceuninck NV (EBR:DECB) An Interesting Investment

Deceuninck NV (EBR:DECB) 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 DECB, it is a financially-healthy company with a strong track record and a excellent growth outlook. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Deceuninck here.

Good value with reasonable growth potential

DECB delivered a bottom-line expansion of 18% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did DECB outperformed its past performance, its growth also exceeded the Building industry expansion, which generated a 1.2% earnings growth. This is an notable feat for the company.

ENXTBR:DECB Past and Future Earnings, August 20th 2019
ENXTBR:DECB Past and Future Earnings, August 20th 2019

DECB's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. DECB appears to have made good use of debt, producing operating cash levels of 0.62x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

ENXTBR:DECB Historical Debt, August 20th 2019
ENXTBR:DECB Historical Debt, August 20th 2019

Next Steps:

For Deceuninck, there are three fundamental factors you should further research:

ADVERTISEMENT
  1. Valuation: What is DECB 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 DECB is currently mispriced by the market.

  2. Dividend Income vs Capital Gains: Does DECB 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 DECB as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DECB? 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.