Yahoo Finance These Factors Make JD Sports Fashion plc (LON:JD.) A Great Investment
I’ve been keeping an eye on JD Sports Fashion plc (LSE:JD.) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe JD. has a lot to offer. Basically, it is a financially-sound company with an impressive history and a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on JD Sports Fashion here.
Excellent balance sheet with solid track record
JD. has a strong track record of performance. In the previous year, JD. delivered an impressive double-digit return of 28.34% Not surprisingly, JD. outperformed its industry which returned 12.96%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward.
JD.’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 an important determinant of the company’s health. JD. seems to have put its debt to good use, generating operating cash levels of 8.96x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For JD Sports Fashion, I’ve put together three important aspects you should further research:
Valuation: What is JD. 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 JD. is currently mispriced by the market.
Dividend Income vs Capital Gains: Does JD. 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 JD. as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JD.? 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.
