Troax Group AB (publ) (STO:TROAX) Has Attractive Fundamentals

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Attractive stocks have exceptional fundamentals. In the case of Troax Group AB (publ) (STO:TROAX), there’s is a financially-sound company with a great history and a buoyant growth outlook. 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 Troax Group here.

Outstanding track record with reasonable growth potential

In the previous year, TROAX has ramped up its bottom line by 37%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 28% return to shareholders, which is an optimistic signal for the future.

OM:TROAX Past and Future Earnings, June 28th 2019
OM:TROAX Past and Future Earnings, June 28th 2019

TROAX’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 TROAX manages its cash and cost levels well, which is a key determinant of the company’s health. TROAX appears to have made good use of debt, producing operating cash levels of 0.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

OM:TROAX Historical Debt, June 28th 2019
OM:TROAX Historical Debt, June 28th 2019

Next Steps:

For Troax Group, there are three fundamental aspects you should look at:

  1. Valuation: What is TROAX 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 TROAX is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does TROAX return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from TROAX as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TROAX? 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.