Cambria Automobiles plc (LON:CAMB) Has Attractive Fundamentals
Cambria Automobiles plc (LON:CAMB) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CAMB, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Cambria Automobiles here.
Undervalued with excellent balance sheet
CAMB’s debt-to-equity ratio stands at 31%, which means its debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. CAMB’s has produced operating cash levels of 0.74x total debt over the past year, which implies that CAMB’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. CAMB is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if CAMB’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the specialty retail industry, CAMB is also trading below its peers, relative to earnings generated. This bolsters the proposition that CAMB’s price is currently discounted.
Next Steps:
For Cambria Automobiles, I’ve put together three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for CAMB’s future growth? Take a look at our free research report of analyst consensus for CAMB’s outlook.
Historical Performance: What has CAMB’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.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CAMB? 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 editorial-team@simplywallst.com.
