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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Legend Corporation Limited (ASX:LGD) due to its excellent fundamentals in more than one area. LGD is a company with great financial health as well as a a great history of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Legend here.

Proven track record with adequate balance sheet

In the previous year, LGD has ramped up its bottom line by 31%, with its latest earnings level surpassing its average level over the last five years. Not only did LGD outperformed its past performance, its growth also surpassed the Trade Distributors industry expansion, which generated a -2.1% earnings growth. This paints a buoyant picture for the company. LGD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that LGD manages its cash and cost levels well, which is an important determinant of the company’s health. LGD’s debt-to-equity ratio stands at 37%, which means its debt level is acceptable. This implies that LGD has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt.

Next Steps:

For Legend, I've put together three pertinent factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for LGD’s future growth? Take a look at our free research report of analyst consensus for LGD’s outlook.

2. Valuation: What is LGD 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 LGD is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LGD? 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.