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Hollywood Bowl Group plc (LON:BOWL): A Fundamentally Attractive Investment

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Hollywood Bowl Group plc (LON:BOWL) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of BOWL, it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Hollywood Bowl Group here.

Adequate balance sheet with proven track record

BOWL has a strong track record of performance. In the previous year, BOWL delivered an impressive double-digit return of 21% Not surprisingly, BOWL outperformed its industry which returned 9.8%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. BOWL'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 BOWL has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. BOWL seems to have put its debt to good use, generating operating cash levels of 1.15x 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.

LSE:BOWL Income Statement, June 13th 2019
LSE:BOWL Income Statement, June 13th 2019

Next Steps:

For Hollywood Bowl Group, I've put together three relevant factors you should further research:

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

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

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