In This Article:
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Symphony Limited (NSE:SYMPHONY) due to its excellent fundamentals in more than one area. SYMPHONY is a company with impressive financial health as well as a excellent growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Symphony here.
Exceptional growth potential with excellent balance sheet
Investors in search of impressive top-line expansion should look no further than SYMPHONY, with its expected 76% revenue growth in the upcoming year. This is expected to flow down into an impressive return on equity of 29% over the next couple of years. SYMPHONY’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that SYMPHONY manages its cash and cost levels well, which is a key determinant of the company’s health. SYMPHONY’s has produced operating cash levels of 4.18x total debt over the past year, which implies that SYMPHONY’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Symphony, there are three relevant aspects you should look at:
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Historical Performance: What has SYMPHONY’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.
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Valuation: What is SYMPHONY 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 SYMPHONY 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 SYMPHONY? 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.