Yahoo Finance A Look At Electrocomponents plc's (LON:ECM) Exceptional Fundamentals
Attractive stocks have exceptional fundamentals. In the case of Electrocomponents plc (LON:ECM), there's is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Electrocomponents here.
Proven track record with adequate balance sheet
ECM delivered a satisfying double-digit returns of 25% in the most recent year. Not surprisingly, ECM outperformed its industry which returned 11%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. ECM's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ECM has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. ECM seems to have put its debt to good use, generating operating cash levels of 0.5x 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.
Next Steps:
For Electrocomponents, I've put together three essential aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for ECM’s future growth? Take a look at our free research report of analyst consensus for ECM’s outlook.
Valuation: What is ECM 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 ECM is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ECM? 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.
