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Sweco AB (publ) (STO:SWEC B) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SWEC B, 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. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Sweco here.
Flawless balance sheet with proven track record
SWEC B delivered a satisfying double-digit returns of 20% in the most recent year Unsurprisingly, SWEC B surpassed the Construction industry return of 24%, which gives us more confidence of the company's capacity to drive earnings going forward. SWEC B'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 SWEC B manages its cash and cost levels well, which is a key determinant of the company’s health. SWEC B's has produced operating cash levels of 0.71x total debt over the past year, which implies that SWEC B's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Sweco, I've compiled three key factors you should further research:
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Future Outlook: What are well-informed industry analysts predicting for SWEC B’s future growth? Take a look at our free research report of analyst consensus for SWEC B’s outlook.
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Valuation: What is SWEC B 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 SWEC B 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 SWEC B? 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.