Yahoo Finance Fevertree Drinks Plc (LON:FEVR) Has Attractive Fundamentals, Here’s Why
Fevertree Drinks Plc (AIM:FEVR) 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 FEVR, it is a financially-healthy company with an impressive track record and a buoyant future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Fevertree Drinks here.
Outstanding track record with excellent balance sheet
Investors seeking high cash growth potential should consider FEVR, with forecasted operating cash flow growth of 74.56%. This is expected to flow down into an impressive return on equity of 26.95% over the next couple of years. In the previous year, FEVR has ramped up its bottom line by 65.50%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 34.98% return to shareholders, which is what investors like to see!
FEVR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that FEVR has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. FEVR seems to have put its debt to good use, generating operating cash levels of 5.6x 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 Fevertree Drinks, there are three essential aspects you should further examine:
Valuation: What is FEVR 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 FEVR is currently mispriced by the market.
Dividend Income vs Capital Gains: Does FEVR 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 FEVR as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FEVR? 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.
