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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Koenig & Bauer AG (FRA:SKB) due to its excellent fundamentals in more than one area. SKB is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Koenig & Bauer here.
Very undervalued with excellent balance sheet
SKB is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SKB has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. SKB appears to have made good use of debt, producing operating cash levels of 0.24x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. SKB’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if SKB’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, SKB’s share price is trading below the group’s average. This bolsters the proposition that SKB’s price is currently discounted.
For Koenig & Bauer, I’ve compiled three pertinent factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for SKB’s future growth? Take a look at our free research report of analyst consensus for SKB’s outlook.
- Historical Performance: What has SKB’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SKB? 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 firstname.lastname@example.org. 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.