HELLA GmbH & Co KGaA (FRA:HLE) 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 HLE, it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the 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 18%, with its latest earnings level surpassing its average level over the last five years. Not only did HLE outperformed its past performance, its growth also surpassed the Auto Components industry expansion, which generated a 2.7% earnings growth. This 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 implies that HLE manages its cash and cost levels well, which is a key determinant of the company’s health. HLE’s has produced operating cash levels of 0.63x total debt over the past year, which implies that HLE’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For HELLA GmbH KGaA, there are three pertinent aspects you should further research:
- 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.
- 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.
- 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.