Self Storage Group ASA (OB:SSG): A Fundamentally Attractive Investment

Attractive stocks have exceptional fundamentals. In the case of Self Storage Group ASA (OB:SSG), there's is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Self Storage Group here.

Proven track record with adequate balance sheet

In the previous year, SSG has ramped up its bottom line by 84%, with its latest earnings level surpassing its average level over the last five years. Not only did SSG outperformed its past performance, its growth also surpassed the Commercial Services industry expansion, which generated a 12% earnings growth. This paints a buoyant picture for the company. SSG's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that SSG manages its cash and cost levels well, which is an important determinant of the company’s health. SSG's has produced operating cash levels of 0.75x total debt over the past year, which implies that SSG's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

OB:SSG Income Statement, August 16th 2019
OB:SSG Income Statement, August 16th 2019

Next Steps:

For Self Storage Group, I've compiled three fundamental aspects you should further examine:

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

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

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