Bonduelle SA (EPA:BON) 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 BON, it is a financially-healthy company with a a great history of performance, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Bonduelle here.
Established dividend payer and good value
BON delivered a bottom-line expansion of 14% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did BON outperformed its past performance, its growth also exceeded the Food industry expansion, which generated a -17% earnings growth. This is an notable feat for the company. BON’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that BON has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Debt funding requires timely payments on interest to lenders. BON’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.
BON is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of BON’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the food industry, BON is also trading below its peers, relative to earnings generated. This further reaffirms that BON is potentially undervalued.
For Bonduelle, I’ve put together three key factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for BON’s future growth? Take a look at our free research report of analyst consensus for BON’s outlook.
- Dividend Income vs Capital Gains: Does BON 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 BON as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BON? 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 firstname.lastname@example.org. 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.