Yahoo Finance Should Rotork plc (LON:ROR) Be Your Next Stock Pick?
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Rotork plc (LON:ROR) due to its excellent fundamentals in more than one area. ROR is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Rotork here.
Excellent balance sheet with proven track record
ROR delivered a bottom-line expansion of 65% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, ROR also outperformed its industry, which delivered a growth of 13%. This is what investors like to see! ROR's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ROR has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ROR seems to have put its debt to good use, generating operating cash levels of 1.94x 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 Rotork, I've put together three relevant aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for ROR’s future growth? Take a look at our free research report of analyst consensus for ROR’s outlook.
Valuation: What is ROR 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 ROR is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ROR? 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.
