Yahoo Finance Why Codemasters Group Holdings Plc (LON:CDM) Is An Attractive Investment To Consider
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Codemasters Group Holdings Plc (LON:CDM) due to its excellent fundamentals in more than one area. CDM is a company with robust financial health as well as a excellent growth outlook. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Codemasters Group Holdings here.
Flawless balance sheet with high growth potential
CDM is an attractive stock for growth-seeking investors, with an expected earnings growth of 25% in the upcoming year underlying the notable 23% return on equity over the next few years leading up to 2022. CDM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CDM manages its cash and cost levels well, which is a key determinant of the company’s health. CDM seems to have put its debt to good use, generating operating cash levels of 89.22x 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 Codemasters Group Holdings, there are three fundamental aspects you should look at:
Historical Performance: What has CDM's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Valuation: What is CDM 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 CDM is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CDM? 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.
