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A Holistic Look At Servotronics, Inc. (NYSEMKT:SVT)

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Servotronics, Inc. (NYSEMKT:SVT) due to its excellent fundamentals in more than one area. SVT is a company with great financial health as well as a an impressive history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Servotronics here.

Flawless balance sheet with proven track record

SVT delivered a bottom-line expansion of 47% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did SVT outperformed its past performance, its growth also exceeded the Electrical industry expansion, which generated a 20% earnings growth. This is an notable feat for the company. SVT'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 SVT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. SVT's has produced operating cash levels of 0.63x total debt over the past year, which implies that SVT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

AMEX:SVT Income Statement, August 20th 2019
AMEX:SVT Income Statement, August 20th 2019

Next Steps:

For Servotronics, I've put together three key factors you should look at:

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

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

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