A Look At Técnicas Reunidas, S.A.'s (BME:TRE) Exceptional Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Técnicas Reunidas, S.A. (BME:TRE), it is a company with impressive financial health as well as a buoyant growth outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Técnicas Reunidas here.

High growth potential with adequate balance sheet

TRE is an attractive stock for growth-seeking investors, with an expected earnings growth of 29% in the upcoming year which is expected to flow into an impressive return on equity of 26% over the next couple of years. TRE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TRE manages its cash and cost levels well, which is a key determinant of the company’s health. TRE's has produced operating cash levels of 0.2x total debt over the past year, which implies that TRE's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

Next Steps:

For Técnicas Reunidas, I've compiled three pertinent aspects you should look at:

1. Historical Performance: What has TRE'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.
2. Valuation: What is TRE 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 TRE is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TRE? 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.