Attractive stocks have exceptional fundamentals. In the case of Viva Energy Group Limited (ASX:VEA), there’s 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, take a look at the report on Viva Energy Group here.
Excellent balance sheet and good value
VEA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. VEA seems to have put its debt to good use, generating operating cash levels of 0.56x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. VEA’s shares are now trading at a price below its true value based on its PE ratio of 5.17x, compared to the industry and wider stock market ratio, which means it is relatively cheaper than its peers.
For Viva Energy Group, there are three important aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for VEA’s future growth? Take a look at our free research report of analyst consensus for VEA’s outlook.
- Historical Performance: What has VEA’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 VEA? 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.