There are many factors that make up a great investment. Generally, important aspects to consider can be grouped into the following five factors: past performance, financial health, future growth, value for money and cash flow to investors. Today I’ve compiled a group of companies which meet or exceed expectations in two or more areas, causing them to be attractive investments .
Prime People Plc (AIM:PRP)
Prime People Plc, together with its subsidiaries, provides permanent and contract recruitment services in the United Kingdom, the Middle East, Asia, and Africa. The company size now stands at 128 people and with the stock’s market cap sitting at GBP £9.49M, it comes under the small-cap group.
PRP’s upcoming commitments are met by its short-term assets, and the company has no debt in its accounts, demonstrating financial stability and good capital management. PRP’s share price is below its intrinsic value based on its discounted cash flows, as well as its relative price-to-equity valuation, so potential investors can purchase the stock below its value. What’s more is, PRP’s consistent dividend payout, which has grown over a long period of time, makes it one of the highest dividend payers in the market. Dig deeper into Prime People here.
Flowtech Fluidpower plc (AIM:FLO)
Flowtech Fluidpower plc distributes hydraulic and pneumatic fluid power products in the United Kingdom and Northern Europe. Founded in 1983, and run by CEO Sean Fennon, the company currently employs 400 people and with the market cap of GBP £103.68M, it falls under the small-cap category.
One reason why investors are attracted to FLO is its earnings growth potential in the near future of 33.83% overtaking the market average earnings growth rate of 4.49%. Last but not least, FLO has sufficient cash and investments to meet its upcoming liabilities, and its total debt is well-covered by its cash flows, demonstrating financial stability and good capital management. More detail on Flowtech Fluidpower here.
Ten Entertainment Group Plc (LSE:TEG)
Ten Entertainment Group plc, together with its subsidiaries, engages in ten-pin bowling operations in the United Kingdom. Formed in 2017, and now run by Alan Hand, the company employs 1,100 people and with the stock’s market cap sitting at GBP £170.30M, it comes under the small-cap group.
Investors in search for stocks with room to flourish should look no further than TEG, with its expected earnings growth of 21.87%, bolstered by its impressive cash-generating ability, as analysts predict its operating cash flows will rise by 97.78% over the same time period. TEG’s ability to grow its earnings in the past at 43.14%, exceeding its industry expansion of 4.01%, is what investors like to see. Last but not least, TEG maintains a suitable level of debt-to-equity of 18.97% and total debt is adequately covered by its operating cash, demonstrating financial stability and good capital management. Dig deeper into Ten Entertainment Group here.
For more fundamentally-robust companies with industry-beating characteristics to enhance your portfolio, explore this interactive list of big green snowflake stocks.
To help readers see pass 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.