In This Article:
I've been keeping an eye on FDM Group (Holdings) plc (LON:FDM) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe FDM has a lot to offer. Basically, it is a company with great financial health as well as a an impressive 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, take a look at the report on FDM Group (Holdings) here.
Flawless balance sheet with proven track record
FDM delivered a satisfying double-digit returns of 55% in the most recent year. Unsurprisingly, FDM surpassed the IT industry return of 14%, which gives us more confidence of the company's capacity to drive earnings going forward. FDM'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 FDM manages its cash and cost levels well, which is an important determinant of the company’s health. FDM currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
Next Steps:
For FDM Group (Holdings), there are three fundamental aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for FDM’s future growth? Take a look at our free research report of analyst consensus for FDM’s outlook.
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Valuation: What is FDM 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 FDM 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 FDM? 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.