How The SimplyBiz Group plc (LON:SBIZ) Could Add Value To Your Portfolio

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on The SimplyBiz Group plc (LON:SBIZ) due to its excellent fundamentals in more than one area. SBIZ is a company with strong financial health as well as an optimistic growth outlook. 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 SimplyBiz Group here.

Excellent balance sheet with reasonable growth potential

Investors in search for stocks with room to flourish should look no further than SBIZ, with its expected earinngs growth of 30%, bolstered by its impressive cash-generating ability, as analysts predict its operating cash flows will rise by 88% over the same time period. This is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. SBIZ'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 indicates that SBIZ has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. SBIZ seems to have put its debt to good use, generating operating cash levels of 0.81x 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 SimplyBiz Group, I've put together three relevant aspects you should look at:

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