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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 Palfinger AG (VIE:PAL), it is a company with great financial health as well as a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Palfinger here.
Adequate balance sheet with proven track record
In the previous year, PAL has ramped up its bottom line by 20%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, PAL also outperformed its industry, which delivered a growth of 13%. This is what investors like to see! PAL’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 implies that PAL manages its cash and cost levels well, which is an important determinant of the company’s health. PAL appears to have made good use of debt, producing operating cash levels of 0.22x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Palfinger, I’ve compiled three fundamental aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for PAL’s future growth? Take a look at our free research report of analyst consensus for PAL’s outlook.
- Valuation: What is PAL 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 PAL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PAL? 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 firstname.lastname@example.org. 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.