Yahoo Finance Why Sanne Group plc (LON:SNN) Could Have A Place In Your Portfolio
I've been keeping an eye on Sanne Group plc (LON:SNN) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SNN has a lot to offer. Basically, it is a company with impressive financial health as well as a buoyant future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Sanne Group here.
High growth potential with adequate balance sheet
Investors in search for stocks with room to flourish should look no further than SNN, with its expected earnings growth of 24% underlying the notable 23% return on equity over the next few years leading up to 2022. SNN'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 key determinant of the company’s health. SNN seems to have put its debt to good use, generating operating cash levels of 0.32x 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 Sanne Group, there are three essential factors you should look at:
Historical Performance: What has SNN'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 SNN 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 SNN is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SNN? 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.
