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HD Supply Holdings, Inc. (NASDAQ:HDS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of HDS, it is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on HD Supply Holdings here.
Solid track record with adequate balance sheet
In the past couple of years, HDS has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did HDS outperformed its past performance, its growth also surpassed the Trade Distributors industry expansion, which generated a -7.0% earnings growth. This is an optimistic signal for the future. HDS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. HDS seems to have put its debt to good use, generating operating cash levels of 0.31x 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 HD Supply Holdings, I've compiled three relevant aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for HDS’s future growth? Take a look at our free research report of analyst consensus for HDS’s outlook.
- Valuation: What is HDS 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 HDS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HDS? 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.