Astronics Corporation (NASDAQ:ATRO) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ATRO, it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Astronics here.
Flawless balance sheet with solid track record
Over the past few years, ATRO has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 24% return to shareholders, which is what investors like to see! ATRO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. ATRO seems to have put its debt to good use, generating operating cash levels of 0.46x 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 Astronics, I’ve put together three essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for ATRO’s future growth? Take a look at our free research report of analyst consensus for ATRO’s outlook.
- Valuation: What is ATRO 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 ATRO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ATRO? 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.