Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Steadfast Group Limited (ASX:SDF) due to its excellent fundamentals in more than one area. SDF is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Steadfast Group here.

Flawless balance sheet with proven track record

Over the past few years, SDF has demonstrated a proven ability to generate robust returns of 4.1% Not surprisingly, SDF outperformed its industry which returned 4.1%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. SDF’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 SDF has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. SDF seems to have put its debt to good use, generating operating cash levels of 0.56x 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.

Next Steps:

For Steadfast Group, I’ve compiled three essential aspects you should further research:

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

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

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SDF? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.