Looking At Goodman Group (ASX:GMG) From All Angles

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Goodman Group (ASX:GMG) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of GMG, it is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Goodman Group here.

Excellent balance sheet with solid track record

In the previous year, GMG has ramped up its bottom line by 94%, with its latest earnings level surpassing its average level over the last five years. Not only did GMG outperformed its past performance, its growth also surpassed the REITs industry expansion, which generated a -11% earnings growth. This is what investors like to see! GMG’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that GMG has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. GMG’s has produced operating cash levels of 0.31x total debt over the past year, which implies that GMG’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ASX:GMG Income Statement, June 26th 2019
ASX:GMG Income Statement, June 26th 2019

Next Steps:

For Goodman Group, I’ve compiled three essential factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for GMG’s future growth? Take a look at our free research report of analyst consensus for GMG’s outlook.
  2. Valuation: What is GMG 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 GMG is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GMG? 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.