An Examination Of Kelly Partners Group Holdings Limited (ASX:KPG)

Attractive stocks have exceptional fundamentals. In the case of Kelly Partners Group Holdings Limited (ASX:KPG), there’s is a financially-sound company with a strong history and a buoyant growth outlook. 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 Kelly Partners Group Holdings here.

Good value with reasonable growth potential

KPG has a strong track record of performance. In the previous year, KPG delivered an impressive double-digit return of 44% Not surprisingly, KPG outperformed its industry which returned 15%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward.

ASX:KPG Past and Future Earnings, March 13th 2019
ASX:KPG Past and Future Earnings, March 13th 2019

KPG’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that KPG has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. KPG appears to have made good use of debt, producing operating cash levels of 0.47x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

ASX:KPG Historical Debt, March 13th 2019
ASX:KPG Historical Debt, March 13th 2019

Next Steps:

For Kelly Partners Group Holdings, there are three relevant aspects you should look at:

  1. Valuation: What is KPG 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 KPG is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does KPG return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from KPG as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KPG? 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.