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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Dart Group PLC (LON:DTG) due to its excellent fundamentals in more than one area. DTG is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Dart Group here.
Proven track record with adequate balance sheet
Over the past year, DTG has grown its earnings by 76%, with its most recent figure exceeding its annual average over the past five years. Not only did DTG outperformed its past performance, its growth also surpassed the Airlines industry expansion, which generated a -20% earnings growth. This is what investors like to see! DTG's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that DTG has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. DTG appears to have made good use of debt, producing operating cash levels of 0.62x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Dart Group, there are three key aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for DTG’s future growth? Take a look at our free research report of analyst consensus for DTG’s outlook.
- Valuation: What is DTG 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 DTG is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DTG? 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.