Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

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 Microequities Asset Management Group Limited (ASX:MAM), it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Microequities Asset Management Group here.

Flawless balance sheet and good value

MAM'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 an important determinant of the company’s health. MAM currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future. MAM is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of MAM's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the capital markets industry, MAM is also trading below its peers, relative to earnings generated. This further reaffirms that MAM is potentially undervalued.

Next Steps:

For Microequities Asset Management Group, I've compiled three essential factors you should further research:

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

2. Historical Performance: What has MAM'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.

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