I've been keeping an eye on UCW Limited (ASX:UCW) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe UCW has a lot to offer. Basically, it 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. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on UCW here.
Excellent balance sheet with proven track record
UCW delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, UCW also outperformed its industry, which delivered a growth of 0.6%. This is an notable feat for the company. With a debt-to-equity ratio of 8.2%, UCW’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. UCW appears to have made good use of debt, producing operating cash levels of 2.7x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For UCW, I've put together three essential factors you should further research:
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Future Outlook: What are well-informed industry analysts predicting for UCW’s future growth? Take a look at our free research report of analyst consensus for UCW’s outlook.
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Valuation: What is UCW 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 UCW is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UCW? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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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.