Arotech Corporation (NASDAQ:ARTX) 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 ARTX, it is a financially-robust company with a a excellent growth outlook, not yet priced into the stock. 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 Arotech here.
Excellent balance sheet and good value
ARTX’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if ARTX’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of ARTX’s peers, it is also trading at a value below those of similar sizes in asset terms. This bolsters the proposition that ARTX’s price is currently discounted.
ARTX’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ARTX has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ARTX appears to have made good use of debt, producing operating cash levels of 0.32x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Arotech, I’ve compiled three important factors you should further examine:
- Historical Performance: What has ARTX’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.
- Dividend Income vs Capital Gains: Does ARTX return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ARTX as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ARTX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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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.