An Examination Of S.A. (WSE:ETX)

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on S.A. (WSE:ETX) due to its excellent fundamentals in more than one area. ETX is a company with great financial health as well as a a great history 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 here.

Excellent balance sheet with proven track record

ETX has a strong track record of performance. In the previous year, ETX delivered a significant return, with earnings far outstripping equities by more than double. Not surprisingly, ETX outperformed its industry which returned 14%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. ETX currently 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.

WSE:ETX Income Statement, October 8th 2019
WSE:ETX Income Statement, October 8th 2019

Next Steps:

For, there are three pertinent aspects you should look at:

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