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 TriMas Corporation (NASDAQ:TRS), it is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on TriMas here.
Excellent balance sheet with proven track record
In the past couple of years, TRS has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did TRS outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 31% earnings growth. This is an optimistic signal for the future. TRS’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. TRS’s has produced operating cash levels of 0.44x total debt over the past year, which implies that TRS’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For TriMas, I’ve put together three pertinent factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for TRS’s future growth? Take a look at our free research report of analyst consensus for TRS’s outlook.
- Valuation: What is TRS 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 TRS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TRS? 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.