Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on EMIS Group plc (LON:EMIS) due to its excellent fundamentals in more than one area. EMIS is a company with great financial health as well as a a strong track record 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 EMIS Group here.
Excellent balance sheet with proven track record
Over the past few years, EMIS has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 23% return to shareholders, which is an notable feat for the company. Looking at EMIS’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For EMIS Group, I’ve put together three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for EMIS’s future growth? Take a look at our free research report of analyst consensus for EMIS’s outlook.
- Valuation: What is EMIS 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 EMIS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EMIS? 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 email@example.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.