Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on LEM Holding SA (OTCPK:LMHD.F) due to its excellent fundamentals in more than one area. LMHD.F is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on LEM Holding here.
Adequate balance sheet with proven track record
In the previous year, LMHD.F has ramped up its bottom line by 8.5%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 61% return to shareholders, which is an optimistic signal for the future. LMHD.F’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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. LMHD.F’s has produced operating cash levels of 1.55x total debt over the past year, which implies that LMHD.F’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For LEM Holding, I’ve compiled three fundamental aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for LMHD.F’s future growth? Take a look at our free research report of analyst consensus for LMHD.F’s outlook.
- Valuation: What is LMHD.F 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 LMHD.F is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LMHD.F? 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.