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Inghams Group Limited (ASX:ING): A Fundamentally Attractive Investment

Simply Wall St

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Inghams Group Limited (ASX:ING) due to its excellent fundamentals in more than one area. ING 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 understanding where the figures come from and want to see the analysis, read the full report on Inghams Group here.

Proven track record with adequate balance sheet

ING has a strong track record of performance. In the previous year, ING delivered an impressive double-digit return of 13% Not surprisingly, ING outperformed its industry which returned 5.4%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. ING'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 an important determinant of the company’s health. ING appears to have made good use of debt, producing operating cash levels of 0.49x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

ASX:ING Income Statement, July 19th 2019

Next Steps:

For Inghams Group, I've put together three important aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for ING’s future growth? Take a look at our free research report of analyst consensus for ING’s outlook.
  2. Valuation: What is ING 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 ING is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ING? 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 editorial-team@simplywallst.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.