Attractive stocks have exceptional fundamentals. In the case of SP Corporation Limited (SGX:AWE), there's is a company that has been able to sustain great financial health, trading at an attractive share price. 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 SP here.

Flawless balance sheet and good value

AWE'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 implies that AWE manages its cash and cost levels well, which is an important determinant of the company’s health. Looking at AWE's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-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. AWE's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the market, AWE is also trading below other listed companies on the SG stock exchange, relative to earnings generated. This further reaffirms that AWE is potentially undervalued.

Next Steps:

For SP, I've put together three pertinent factors you should further research:

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

2. Historical Performance: What has AWE'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.

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