In This Article:
Escorts Limited (NSE:ESCORTS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ESCORTS, it is a financially-robust company with a strong history and a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Escorts here.
Flawless balance sheet with solid track record
ESCORTS 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. Not only did ESCORTS outperformed its past performance, its growth also exceeded the Machinery industry expansion, which generated a 25% earnings growth. This is what investors like to see!
ESCORTS’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 an important determinant of the company’s health. ESCORTS’s has produced operating cash levels of 9.01x total debt over the past year, which implies that ESCORTS’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Escorts, there are three key factors you should further examine:
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Valuation: What is ESCORTS 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 ESCORTS is currently mispriced by the market.
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Dividend Income vs Capital Gains: Does ESCORTS 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 ESCORTS as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ESCORTS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.