Attractive stocks have exceptional fundamentals. In the case of Bassett Furniture Industries, Incorporated (NASDAQ:BSET), there’s is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Bassett Furniture Industries here.
Flawless balance sheet and good value
BSET 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 an important determinant of the company’s health. BSET’s has produced operating cash levels of 76.28x total debt over the past year, which implies that BSET’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. BSET is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of BSET’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of BSET’s peers, it is also trading at a value below those of similar sizes in asset terms. This supports the theory that BSET is potentially underpriced.
For Bassett Furniture Industries, I’ve put together three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for BSET’s future growth? Take a look at our free research report of analyst consensus for BSET’s outlook.
- Historical Performance: What has BSET’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BSET? 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 email@example.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.