These Factors Make FIH group plc (LON:FIH) A Great Investment

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on FIH group plc (LON:FIH) due to its excellent fundamentals in more than one area. FIH is a company with great financial health as well as a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on FIH group here.

Flawless balance sheet with proven track record

FIH delivered a bottom-line expansion of 76.38% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, FIH also outperformed its industry, which delivered a growth of 17.87%. This is what investors like to see! FIH'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 implies that FIH manages its cash and cost levels well, which is an important determinant of the company’s health. FIH appears to have made good use of debt, producing operating cash levels of 0.5x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

Next Steps:

For FIH group, I've compiled three key factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for FIH’s future growth? Take a look at our free research report of analyst consensus for FIH’s outlook.
2. Valuation: What is FIH 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 FIH is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FIH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.