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Should Moncler S.p.A. (BIT:MONC) Be Your Next Stock Pick?

I've been keeping an eye on Moncler S.p.A. (BIT:MONC) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MONC has a lot to offer. Basically, it is a financially-robust company with an impressive track record and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Moncler here.

Flawless balance sheet with solid track record

Over the past year, MONC has grown its earnings by 26%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 34%, which paints a buoyant picture for the company.

BIT:MONC Past and Future Earnings, August 12th 2019
BIT:MONC Past and Future Earnings, August 12th 2019

MONC's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that MONC manages its cash and cost levels well, which is a key determinant of the company’s health. MONC appears to have made good use of debt, producing operating cash levels of 5.47x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

BIT:MONC Historical Debt, August 12th 2019
BIT:MONC Historical Debt, August 12th 2019

Next Steps:

For Moncler, I've compiled three essential factors you should look at:

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  1. Valuation: What is MONC 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 MONC is currently mispriced by the market.

  2. Dividend Income vs Capital Gains: Does MONC 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 MONC as an investment.

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