Should You Consider HELLA GmbH & Co. KGaA (FRA:HLE)?

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Attractive stocks have exceptional fundamentals. In the case of HELLA GmbH & Co. KGaA (FRA:HLE), there’s is a company with great financial health as well as a a strong track record 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, read the full report on HELLA GmbH KGaA here.

Excellent balance sheet with solid track record

In the previous year, HLE has ramped up its bottom line by 73%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 23% return to shareholders, which paints a buoyant picture for the company. HLE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that HLE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. HLE appears to have made good use of debt, producing operating cash levels of 0.59x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

DB:HLE Income Statement Export February 1st 19
DB:HLE Income Statement Export February 1st 19

Next Steps:

For HELLA GmbH KGaA, there are three essential factors you should further examine:

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