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Genie Energy Ltd. (NYSE:GNE) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of GNE, it 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. If you're interested in understanding beyond my broad commentary, take a look at the report on Genie Energy here.
Excellent balance sheet with proven track record
GNE has a strong track record of performance. In the previous year, GNE delivered an impressive double-digit return of 22%. Unsurprisingly, GNE surpassed the Electric Utilities industry return of 10%, which gives us more confidence of the company's capacity to drive earnings going forward. GNE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that GNE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. GNE seems to have put its debt to good use, generating operating cash levels of 5.17x 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.
For Genie Energy, there are three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for GNE’s future growth? Take a look at our free research report of analyst consensus for GNE’s outlook.
- Valuation: What is GNE 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 GNE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GNE? 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 email@example.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.