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 HiTech Group Australia Limited (ASX:HIT), 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. If you’re interested in understanding beyond my broad commentary, take a look at the report on HiTech Group Australia here.
Flawless balance sheet with solid track record
HIT has a strong track record of performance. In the previous year, HIT delivered an impressive double-digit return of 40%. Unsurprisingly, HIT surpassed the Professional Services industry return of 16%, which gives us more confidence of the company’s capacity to drive earnings going forward. HIT’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that HIT manages its cash and cost levels well, which is a crucial insight into the health of the company. Investors should not worry about HIT’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For HiTech Group Australia, I’ve compiled three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for HIT’s future growth? Take a look at our free research report of analyst consensus for HIT’s outlook.
- Valuation: What is HIT 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 HIT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HIT? 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 email@example.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.