Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
I’ve been keeping an eye on Countplus Limited (ASX:CUP) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CUP has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. 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, read the full report on Countplus here.
Flawless balance sheet and good value
CUP’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that CUP has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. CUP appears to have made good use of debt, producing operating cash levels of 3.86x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. CUP’s shares are now trading at a price below its true value based on its PE ratio of 8.62x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.
For Countplus, I’ve put together three relevant aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for CUP’s future growth? Take a look at our free research report of analyst consensus for CUP’s outlook.
- Historical Performance: What has CUP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CUP? 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.