As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of FBD Holdings plc (ISE:EG7), it is a company with great financial health as well as a a strong 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 FBD Holdings here.
Solid track record with adequate balance sheet
EG7 delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did EG7 outperformed its past performance, its growth also exceeded the Insurance industry expansion, which generated a 1.1% earnings growth. This is what investors like to see! With a debt-to-equity ratio of 19%, EG7’s debt level is reasonable. This implies that EG7 has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. EG7 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.
For FBD Holdings, I’ve put together three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for EG7’s future growth? Take a look at our free research report of analyst consensus for EG7’s outlook.
- Valuation: What is EG7 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 EG7 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EG7? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.