How Hunting plc (LON:HTG) Could Add Value To Your Portfolio

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Hunting plc (LON:HTG) due to its excellent fundamentals in more than one area. HTG is a company with strong financial health as well as a excellent growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Hunting here.

Flawless balance sheet with reasonable growth potential

HTG is an attractive stock for growth-seeking investors, with an expected earnings growth of 23% in the upcoming year, made up of high-quality, operational cash from its core business, which is expected to more than double over the next year. This indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. HTG’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 HTG has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. HTG’s has produced operating cash levels of 7.4x total debt over the past year, which implies that HTG’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:HTG Future Profit January 25th 19

Next Steps:

For Hunting, I’ve put together three essential aspects you should further examine:

1. Historical Performance: What has HTG’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 HTG 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 HTG is currently mispriced by the market.

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