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Newag S.A. (WSE:NWG) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of NWG, it is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Newag here.
Adequate balance sheet with proven track record
Over the past few years, NWG has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did NWG outperformed its past performance, its growth also exceeded the Machinery industry expansion, which generated a 95% earnings growth. This paints a buoyant picture for the company. NWG’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 implies that NWG manages its cash and cost levels well, which is an important determinant of the company’s health. Debt funding requires timely payments on interest to lenders. NWG’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.
Next Steps:
For Newag, I’ve compiled three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for NWG’s future growth? Take a look at our free research report of analyst consensus for NWG’s outlook.
- Valuation: What is NWG 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 NWG is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NWG? 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.