LandMark White Limited (ASX:LMW) 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 LMW, it is a financially-sound company with a a strong history of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on LandMark White here.
Excellent balance sheet and good value
In the previous year, LMW has ramped up its bottom line by 84.35%, with its latest earnings level surpassing its average level over the last five years. Not only did LMW outperformed its past performance, its growth also surpassed the Real Estate industry expansion, which generated a 7.50% earnings growth. This paints a buoyant picture for the company. LMW’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 indicates that LMW has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. LMW seems to have put its debt to good use, generating operating cash levels of 43.51x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
LMW’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if LMW’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the real estate industry, LMW is also trading below its peers, relative to earnings generated. This bolsters the proposition that LMW’s price is currently discounted.
Next Steps:
For LandMark White, there are three pertinent factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for LMW’s future growth? Take a look at our free research report of analyst consensus for LMW’s outlook.
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Dividend Income vs Capital Gains: Does LMW 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 LMW as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LMW? 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 pass 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.