Yahoo Finance Reasons Why I Like Morses Club PLC (LON:MCL)
Attractive stocks have exceptional fundamentals. In the case of Morses Club PLC (LON:MCL), there’s is a financially-healthy company with a great track record and a excellent future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Morses Club here.
Solid track record with reasonable growth potential and pays a dividend
MCL is expected to churn out cash in the short term, with its operating cash flow predicted to expand at a triple-digit growth rate. This is expected to flow down into an impressive return on equity of 23.49% over the next couple of years. In the previous year, MCL has ramped up its bottom line by 52.45%, with its latest earnings level surpassing its average level over the last five years. Not only did MCL outperformed its past performance, its growth also exceeded the Consumer Finance industry expansion, which generated a 49.51% earnings growth. This is what investors like to see!
MCL’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 suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. MCL appears to have made good use of debt, producing operating cash levels of 0.47x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Morses Club, there are three key factors you should look at:
Valuation: What is MCL 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 MCL is currently mispriced by the market.
Dividend Income vs Capital Gains: Does MCL 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 MCL as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MCL? 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.
