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A Holistic Look At SDL plc (LON:SDL)

I've been keeping an eye on SDL plc (LON:SDL) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SDL has a lot to offer. Basically, it is a company with strong financial health as well as a excellent future outlook. Below is a brief commentary 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 SDL here.

Flawless balance sheet with reasonable growth potential

SDL'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 indicates that SDL has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. SDL's has produced operating cash levels of 6.67x total debt over the past year, which implies that SDL's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:SDL Past and Future Earnings, April 19th 2019
LSE:SDL Past and Future Earnings, April 19th 2019

Next Steps:

For SDL, I've compiled three important aspects you should further research:

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  1. Historical Performance: What has SDL's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

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

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