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 National Beverage Corp. (NASDAQ:FIZZ), it is a company with great financial health as well as a a strong history 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 National Beverage here.
Outstanding track record with flawless balance sheet
In the previous year, FIZZ has ramped up its bottom line by 33%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 40% return to shareholders, which paints a buoyant picture for the company. FIZZ’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 implies that FIZZ manages its cash and cost levels well, which is a key determinant of the company’s health. FIZZ currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$3.8b market 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 National Beverage, I’ve compiled three essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for FIZZ’s future growth? Take a look at our free research report of analyst consensus for FIZZ’s outlook.
- Valuation: What is FIZZ 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 FIZZ is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FIZZ? 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.