Yahoo Finance Should You Be Holding Ambu A/S (CPH:AMBU B)?
Ambu A/S (CPH:AMBU B) 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 AMBU B, it is a financially-sound company with an impressive track record and a buoyant growth outlook. 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 Ambu here.
High growth potential with solid track record
One reason why investors are attracted to AMBU B is its earnings growth potential in the near future of 21% underlying the notable 22% return on equity over the next few years leading up to 2022. In the previous year, AMBU B has ramped up its bottom line by 62%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 23%, which paints a buoyant picture for the company.
AMBU B is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that AMBU B has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. AMBU B seems to have put its debt to good use, generating operating cash levels of 0.57x 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 Ambu, I've put together three key aspects you should further research:
Valuation: What is AMBU B 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 AMBU B is currently mispriced by the market.
Dividend Income vs Capital Gains: Does AMBU B 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 AMBU B as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMBU B? 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.
