I’ve been keeping an eye on Arcadis NV (AMS:ARCAD) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ARCAD has a lot to offer. Basically, it is a financially-robust company with a a great history of performance, trading at a great value. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Arcadis here.
Excellent balance sheet, good value and pays a dividend
ARCAD delivered a bottom-line expansion of 24% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, ARCAD also outperformed its industry, which delivered a growth of 5.9%. This paints a buoyant picture for the company. ARCAD 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 a key determinant of the company’s health. ARCAD seems to have put its debt to good use, generating operating cash levels of 0.24x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
ARCAD’s shares are now trading at a price below its true value based on its PE ratio of 12.65x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.
For Arcadis, I’ve put together three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ARCAD’s future growth? Take a look at our free research report of analyst consensus for ARCAD’s outlook.
- Dividend Income vs Capital Gains: Does ARCAD 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 ARCAD as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ARCAD? 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.