Mainfreight Limited (NZSE:MFT) 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 MFT, it is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Mainfreight here.

Flawless balance sheet with solid track record

Over the past year, MFT has grown its earnings by 28%, with its most recent figure exceeding its annual average over the past five years. Not only did MFT outperformed its past performance, its growth also surpassed the Logistics industry expansion, which generated a 1.9% earnings growth. This is what investors like to see! MFT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that MFT manages its cash and cost levels well, which is an important determinant of the company’s health. MFT's has produced operating cash levels of 0.83x total debt over the past year, which implies that MFT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

Next Steps:

For Mainfreight, I've put together three important aspects you should further research:

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

2. Valuation: What is MFT 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 MFT is currently mispriced by the market.

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