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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of National Beverage Corp. (NASDAQ:FIZZ), it is a company with great financial health as well as a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on National Beverage here.
Flawless balance sheet with proven track record
FIZZ has a strong track record of performance. In the previous year, FIZZ delivered an impressive double-digit return of 49% Unsurprisingly, FIZZ surpassed the Beverage industry return of 19%, which gives us more confidence of the company’s capacity to drive earnings going forward. FIZZ’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that FIZZ manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at FIZZ’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$2.3b market 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.
For National Beverage, I’ve put together three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for FIZZ’s future growth? Take a look at our free research report of analyst consensus for FIZZ’s outlook.
- Valuation: What is FIZZ 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 FIZZ is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FIZZ? 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.