Why MJ Gleeson plc (LON:GLE) Could Be Your Next Investment

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on MJ Gleeson plc (LON:GLE) due to its excellent fundamentals in more than one area. GLE 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 broad commentary, read the full report on MJ Gleeson here.

Flawless balance sheet with solid track record

GLE delivered a bottom-line expansion of 31% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did GLE outperformed its past performance, its growth also exceeded the Consumer Durables industry expansion, which generated a 11% earnings growth. This is what investors like to see! GLE's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that GLE manages its cash and cost levels well, which is a crucial insight into the health of the company. Investors should not worry about GLE’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

Next Steps:

For MJ Gleeson, there are three relevant aspects you should further examine:

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