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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 Orient Electric Limited (NSE:ORIENTELEC), it is a company with impressive financial health as well as a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Orient Electric here.
High growth potential with adequate balance sheet
One reason why investors are attracted to ORIENTELEC is its earnings growth potential in the near future of 27% underlying the notable 23% return on equity over the next few years leading up to 2022. ORIENTELEC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ORIENTELEC manages its cash and cost levels well, which is a crucial insight into the health of the company. ORIENTELEC seems to have put its debt to good use, generating operating cash levels of 0.65x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Orient Electric, I’ve compiled three key factors you should further examine:
- Historical Performance: What has ORIENTELEC’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is ORIENTELEC 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 ORIENTELEC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ORIENTELEC? 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 firstname.lastname@example.org. 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.