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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Aliaxis SA (EBR:094124352) due to its excellent fundamentals in more than one area. 094124352 is a financially-healthy company with an impressive track record of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, read the full report on Aliaxis here.
Solid track record and good value
In the previous year, 094124352 has ramped up its bottom line by 18%, with its latest earnings level surpassing its average level over the last five years. Not only did 094124352 outperformed its past performance, its growth also surpassed the Building industry expansion, which generated a 2.5% earnings growth. This is what investors like to see! 094124352'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 crucial insight into the health of the company. 094124352 appears to have made good use of debt, producing operating cash levels of 0.3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
094124352 is currently trading at a price-to-earnings ratio of 8.65x relative to the industry ratio of 16.48x and market ratio of 15.83x, so potential investors can purchase the stock below its value.
Next Steps:
For Aliaxis, there are three fundamental factors you should look at:
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Future Outlook: What are well-informed industry analysts predicting for 094124352’s future growth? Take a look at our free research report of analyst consensus for 094124352’s outlook.
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Dividend Income vs Capital Gains: Does 094124352 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 094124352 as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 094124352? 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.