FDM Group (Holdings) plc (LON:FDM) Has Attractive Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on FDM Group (Holdings) plc (LON:FDM) due to its excellent fundamentals in more than one area. FDM is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on FDM Group (Holdings) here.

Flawless balance sheet with solid track record

Over the past few years, FDM has demonstrated a proven ability to generate robust returns of 53% Not surprisingly, FDM outperformed its industry which returned 11%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. FDM’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 crucial insight into the health of the company. FDM currently 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. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

LSE:FDM Income Statement Export January 3rd 19

Next Steps:

For FDM Group (Holdings), I’ve compiled three important factors you should further examine:

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

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

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