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Toromont Industries Ltd. (TSE:TIH) 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 TIH, it is a company with great financial health as well as a a great history of performance. 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 Toromont Industries here.
Adequate balance sheet with proven track record
TIH delivered a bottom-line expansion of 45% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did TIH outperformed its past performance, its growth also exceeded the Trade Distributors industry expansion, which generated a 13% earnings growth. This paints a buoyant picture for the company. TIH’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 TIH manages its cash and cost levels well, which is an important determinant of the company’s health. TIH seems to have put its debt to good use, generating operating cash levels of 0.34x 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.
Next Steps:
For Toromont Industries, I’ve compiled three key aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for TIH’s future growth? Take a look at our free research report of analyst consensus for TIH’s outlook.
- Valuation: What is TIH 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 TIH is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TIH? 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.