A Holistic Look At Craneware plc (LON:CRW)

Attractive stocks have exceptional fundamentals. In the case of Craneware plc (LON:CRW), there’s is a financially-robust company with an impressive track record and a excellent future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Craneware here.

Flawless balance sheet with outstanding track record

CRW’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 51% in the upcoming year. This is expected to flow down into an impressive return on equity of 33% over the next couple of years. CRW delivered a bottom-line expansion of 15% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 30%. which is an notable feat for the company.

AIM:CRW Past and Future Earnings, April 10th 2019
AIM:CRW Past and Future Earnings, April 10th 2019

CRW is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CRW manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about CRW’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. CRW has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

AIM:CRW Historical Debt, April 10th 2019
AIM:CRW Historical Debt, April 10th 2019

Next Steps:

For Craneware, there are three essential factors you should look at:

  1. Valuation: What is CRW 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 CRW is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does CRW return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from CRW as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CRW? 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.