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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of RIB Software SE (FRA:RIB), it is a financially-robust company with a strong history and an optimistic 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, read the full report on RIB Software here.
Excellent balance sheet with proven track record
RIB delivered a bottom-line expansion of 52% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did RIB outperformed its past performance, its growth also surpassed the Software industry expansion, which generated a 17% earnings growth. This is what investors like to see!
RIB is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that RIB has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. RIB appears to have made good use of debt, producing operating cash levels of 6.11x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For RIB Software, I've put together three pertinent aspects you should further research:
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Valuation: What is RIB 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 RIB is currently mispriced by the market.
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Dividend Income vs Capital Gains: Does RIB 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 RIB as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RIB? 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.