Yahoo Finance Why Tomra Systems ASA (OB:TOM) Is An Attractive Investment To Consider
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I've been keeping an eye on Tomra Systems ASA (OB:TOM) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe TOM has a lot to offer. Basically, it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Tomra Systems here.
Flawless balance sheet with solid track record
Over the past year, TOM has grown its earnings by 21%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, TOM also outperformed its industry, which delivered a growth of 11%. This paints a buoyant picture for the company. TOM'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 indicates that TOM has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. TOM appears to have made good use of debt, producing operating cash levels of 0.67x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Tomra Systems, there are three fundamental aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for TOM’s future growth? Take a look at our free research report of analyst consensus for TOM’s outlook.
Valuation: What is TOM 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 TOM is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TOM? 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.
