Attractive stocks have exceptional fundamentals. In the case of Abcam Plc (LON:ABC), there’s is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Abcam here.
Flawless balance sheet with proven track record
ABC delivered a bottom-line expansion of 36.1% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did ABC outperformed its past performance, its growth also surpassed the Biotechs industry expansion, which generated a 29.0% earnings growth. This is an optimistic signal for the future. ABC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that ABC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at ABC’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 UK£3.03b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Abcam, I’ve put together three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ABC’s future growth? Take a look at our free research report of analyst consensus for ABC’s outlook.
- Valuation: What is ABC 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 ABC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ABC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.