Yahoo Finance Why Hargreaves Lansdown plc (LON:HL.) Is An Attractive Investment
I’ve been keeping an eye on Hargreaves Lansdown plc (LON:HL.) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe HL. has a lot to offer. Basically, it is a financially-healthy company with a great history and a buoyant growth outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Hargreaves Lansdown here.
Flawless balance sheet with reasonable growth potential
HL. delivered a bottom-line expansion of 14.43% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 67.46%, which paints a buoyant picture for the company.
HL.’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that HL. manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at HL.’s capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a UK£9.26b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Hargreaves Lansdown, I’ve compiled three essential aspects you should further examine:
Valuation: What is HL. 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 HL. is currently mispriced by the market.
Dividend Income vs Capital Gains: Does HL. 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 HL. as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HL.? 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.
