U.S. Markets closed

An Examination Of Goodman Group (ASX:GMG)

Simply Wall St

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Goodman Group (ASX:GMG) due to its excellent fundamentals in more than one area. GMG is a company with great financial health as well as a a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Goodman Group here.

Excellent balance sheet with solid track record

In the previous year, GMG has ramped up its bottom line by 94%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, GMG also outperformed its industry, which delivered a growth of -10%. This paints a buoyant picture for the company. GMG 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 crucial insight into the health of the company. GMG’s has produced operating cash levels of 0.31x total debt over the past year, which implies that GMG’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ASX:GMG Income Statement, March 4th 2019

Next Steps:

For Goodman Group, I’ve compiled three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for GMG’s future growth? Take a look at our free research report of analyst consensus for GMG’s outlook.
  2. Valuation: What is GMG 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 GMG is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GMG? 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 editorial-team@simplywallst.com. 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.