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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Craneware plc (LON:CRW), it is a financially-sound company with an impressive track record and a excellent growth outlook. 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 Craneware here.
Flawless balance sheet with outstanding track record
CRW delivered a bottom-line expansion of 17% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 31%, which is an notable feat for the company.
CRW’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that CRW manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about CRW’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For Craneware, there are three key aspects you should further research:
- Valuation: What is CRW 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 CRW is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does CRW 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 CRW as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CRW? 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.