Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Acerinox SA (BME:ACX) due to its excellent fundamentals in more than one area. ACX is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Acerinox here.
Solid track record with excellent balance sheet
Over the past year, ACX has grown its earnings by 54%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, ACX also outperformed its industry, which delivered a growth of 24%. This is what investors like to see! ACX’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 implies that ACX manages its cash and cost levels well, which is a key determinant of the company’s health. ACX’s has produced operating cash levels of 0.21x total debt over the past year, which implies that ACX’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Acerinox, I’ve put together three essential factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ACX’s future growth? Take a look at our free research report of analyst consensus for ACX’s outlook.
- Valuation: What is ACX 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 ACX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ACX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.