Brief Commentary On James Fisher and Sons plc’s (LON:FSJ) Fundamentals

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I’ve been keeping an eye on James Fisher and Sons plc (LON:FSJ) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe FSJ has a lot to offer. Basically, it is a company with great financial health as well as a a great 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, take a look at the report on James Fisher and Sons here.

Solid track record with adequate balance sheet

FSJ 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. Not only did FSJ outperformed its past performance, its growth also exceeded the Infrastructure industry expansion, which generated a 8.0% earnings growth. This is an optimistic signal for the future. FSJ’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. FSJ appears to have made good use of debt, producing operating cash levels of 0.66x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:FSJ Income Statement, June 20th 2019
LSE:FSJ Income Statement, June 20th 2019

Next Steps:

For James Fisher and Sons, there are three relevant aspects you should look at:

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