Yahoo Finance A Look At AB Dynamics Plc's (LON:ABDP) Exceptional Fundamentals
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on AB Dynamics Plc (LON:ABDP) due to its excellent fundamentals in more than one area. ABDP is a financially-sound company with an impressive history and an optimistic 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 AB Dynamics here.
Flawless balance sheet with high growth potential
Bullish market analysts are forecasting fast-growing ABDP to deliver an exceptional sales growth rate of 70% over the next year. This underlies the notable 21% return on equity over the next few years leading up to 2022. ABDP delivered a bottom-line expansion of 80% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did ABDP outperformed its past performance, its growth also surpassed the Auto Components industry expansion, which generated a -0.9% earnings growth. This is an notable feat for the company.
ABDP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that ABDP manages its cash and cost levels well, which is an important determinant of the company’s health. ABDP currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. ABDP 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.
Next Steps:
For AB Dynamics, I've compiled three fundamental factors you should further examine:
Valuation: What is ABDP 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 ABDP is currently mispriced by the market.
Dividend Income vs Capital Gains: Does ABDP return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ABDP as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ABDP? 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.
