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Should You Be Holding GrandVision N.V. (AMS:GVNV)?

GrandVision N.V. (AMS:GVNV) 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 GVNV, it is a financially-sound company with a strong track record and a buoyant growth 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 GrandVision here.

Reasonable growth potential with proven track record

Over the past few years, GVNV has demonstrated a proven ability to generate robust returns of 21% Not surprisingly, GVNV outperformed its industry which returned 12%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward.

ENXTAM:GVNV Future Profit January 18th 19
ENXTAM:GVNV Future Profit January 18th 19

GVNV’s has produced operating cash levels of 0.36x total debt over the past year, which implies that GVNV’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. Debt funding requires timely payments on interest to lenders. GVNV’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.

ENXTAM:GVNV Historical Debt January 18th 19
ENXTAM:GVNV Historical Debt January 18th 19

Next Steps:

For GrandVision, there are three essential factors you should look at:

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  1. Valuation: What is GVNV 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 GVNV is currently mispriced by the market.

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

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