June Fundamental Stock Pick: Forbuild SA (WSE:BTX)

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Forbuild SA (WSE:BTX) due to its excellent fundamentals in more than one area. BTX is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Forbuild here.

Flawless balance sheet with proven track record

Over the past few years, BTX has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, BTX also outperformed its industry, which delivered a growth of 16.87%. This is an notable feat for the company. BTX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that BTX has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Investors should not worry about BTX’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. BTX has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

WSE:BTX Income Statement Jun 14th 18

Next Steps:

For Forbuild, I’ve put together three key aspects you should look at:

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

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

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