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Fraser and Neave, Limited (SGX:F99): The Best Of Both Worlds

In This Article:

Fraser and Neave, Limited (SGX:F99) 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 F99, 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, read the full report on Fraser and Neave here.

Excellent balance sheet with proven track record

Over the past year, F99 has grown its earnings by 88%, with its most recent figure exceeding its annual average over the past five years. Not only did F99 outperformed its past performance, its growth also surpassed the Food industry expansion, which generated a -17% earnings growth. This is what investors like to see! F99'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 a crucial insight into the health of the company. F99's has produced operating cash levels of 0.26x total debt over the past year, which implies that F99's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

SGX:F99 Income Statement, September 26th 2019
SGX:F99 Income Statement, September 26th 2019

Next Steps:

For Fraser and Neave, I've compiled three essential factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for F99’s future growth? Take a look at our free research report of analyst consensus for F99’s outlook.

  2. Valuation: What is F99 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 F99 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of F99? 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.