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Fuling Global Inc. (NASDAQ:FORK): The Best Of Both Worlds

Simply Wall St

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Fuling Global Inc. (NASDAQ:FORK) due to its excellent fundamentals in more than one area. FORK is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Fuling Global here.

Excellent balance sheet with proven track record

In the previous year, FORK has ramped up its bottom line by 21%, with its latest earnings level surpassing its average level over the last five years. Not only did FORK outperformed its past performance, its growth also exceeded the Consumer Durables industry expansion, which generated a 19% earnings growth. This is an optimistic signal for the future. FORK's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. FORK seems to have put its debt to good use, generating operating cash levels of 0.33x 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.

NasdaqCM:FORK Income Statement, June 22nd 2019

Next Steps:

For Fuling Global, I've put together three fundamental factors you should look at:

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