Microgen plc (LON:MCGN) 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 MCGN, it is a company with great financial health as well as a a great 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 Microgen here.
Solid track record with adequate balance sheet
In the previous year, MCGN has ramped up its bottom line by 42%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, MCGN also outperformed its industry, which delivered a growth of 23%. This paints a buoyant picture for the company. With a debt-to-equity ratio of 23%, MCGN’s debt level is reasonable. This means that MCGN’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. MCGN appears to have made good use of debt, producing operating cash levels of 0.65x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Microgen, I’ve put together three key aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MCGN’s future growth? Take a look at our free research report of analyst consensus for MCGN’s outlook.
- Valuation: What is MCGN 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 MCGN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MCGN? 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 email@example.com.