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Should You Consider FFI Holdings Limited (ASX:FFI)?

Simply Wall St

FFI Holdings Limited (ASX:FFI) 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 FFI, it 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. If you're interested in understanding beyond my broad commentary, take a look at the report on FFI Holdings here.

Excellent balance sheet with proven track record

FFI delivered a bottom-line expansion of 42% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, FFI also outperformed its industry, which delivered a growth of -12%. This is what investors like to see! FFI'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 an important determinant of the company’s health. FFI's has produced operating cash levels of 0.6x total debt over the past year, which implies that FFI's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ASX:FFI Income Statement, August 20th 2019

Next Steps:

For FFI Holdings, I've compiled three key factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for FFI’s future growth? Take a look at our free research report of analyst consensus for FFI’s outlook.
  2. Valuation: What is FFI 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 FFI is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FFI? 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 editorial-team@simplywallst.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.