Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Zenitel NV (EBR:ZENT) due to its excellent fundamentals in more than one area. ZENT is a company with great financial health as well as a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Zenitel here.
Flawless balance sheet with proven track record
ZENT'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 implies that ZENT manages its cash and cost levels well, which is a key determinant of the company’s health. ZENT's has produced operating cash levels of 1.29x total debt over the past year, which implies that ZENT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Zenitel, there are three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ZENT’s future growth? Take a look at our free research report of analyst consensus for ZENT’s outlook.
- Valuation: What is ZENT 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 ZENT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ZENT? 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.