As an investor, I look for investments which do 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 Gilat Satellite Networks Ltd. (NASDAQ:GILT), it is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Gilat Satellite Networks here.
Flawless balance sheet with solid track record
Over the past few years, GILT has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, GILT also outperformed its industry, which delivered a growth of 23%. This is what investors like to see! GILT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that GILT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. GILT’s has produced operating cash levels of 1.34x total debt over the past year, which implies that GILT’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Gilat Satellite Networks, I’ve put together three relevant factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for GILT’s future growth? Take a look at our free research report of analyst consensus for GILT’s outlook.
- Valuation: What is GILT 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 GILT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GILT? 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.