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I’ve been keeping an eye on ALS Limited (ASX:ALQ) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ALQ has a lot to offer. Basically, it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on ALS here.
Adequate balance sheet with proven track record
Over the past few years, ALQ 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, ALQ also outperformed its industry, which delivered a growth of 20%. This is an notable feat for the company. ALQ’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ALQ has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. ALQ appears to have made good use of debt, producing operating cash levels of 0.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For ALS, I’ve compiled three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for ALQ’s future growth? Take a look at our free research report of analyst consensus for ALQ’s outlook.
- Valuation: What is ALQ 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 ALQ is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALQ? 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 firstname.lastname@example.org.