Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Systemax Inc (NYSE:SYX) due to its excellent fundamentals in more than one area. SYX is a company with great financial health as well as a a great track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Systemax here.
Flawless balance sheet with solid track record
Over the past few years, SYX has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 35.71%, which is an optimistic signal for the future. SYX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SYX has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Investors should not worry about SYX’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Systemax, I’ve compiled three key aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for SYX’s future growth? Take a look at our free research report of analyst consensus for SYX’s outlook.
- Valuation: What is SYX 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 SYX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SYX? 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 pass 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.