Does The Data Make NRC Group ASA (OB:NRC) An Attractive Investment?
Attractive stocks have exceptional fundamentals. In the case of NRC Group ASA (OB:NRC), there’s is a financially-sound company with an impressive history and a buoyant growth outlook. 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 NRC Group here.
Proven track record with reasonable growth potential
NRC is an attractive stock for growth-seeking investors, with an expected earnings growth of 33% in the upcoming year. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. NRC delivered a satisfying double-digit returns of 5.0% in the most recent year Unsurprisingly, NRC surpassed the industry return of 4.2%, which gives us more confidence of the company’s capacity to drive earnings going forward.
NRC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. NRC’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps NRC expand.
Next Steps:
For NRC Group, I’ve compiled three important aspects you should look at:
Valuation: What is NRC 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 NRC is currently mispriced by the market.
Dividend Income vs Capital Gains: Does NRC 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 NRC as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NRC? 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 editorial-team@simplywallst.com.
