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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 NNIT A/S (CPH:NNIT), it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on NNIT here.
Solid track record with adequate balance sheet
In the previous year, NNIT has ramped up its bottom line by 22%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 22%, which is an optimistic signal for the future. NNIT’s debt-to-equity ratio stands at 31%, which means its debt level is acceptable. This means that NNIT’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. NNIT's has produced operating cash levels of 0.88x total debt over the past year, which implies that NNIT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For NNIT, there are three relevant aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for NNIT’s future growth? Take a look at our free research report of analyst consensus for NNIT’s outlook.
- Valuation: What is NNIT 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 NNIT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NNIT? 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.