Kambi Group plc (STO:KAMBI): Commentary On Fundamentals

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Kambi Group plc (STO:KAMBI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of KAMBI, it is a company with impressive financial health as well as a excellent future outlook. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Kambi Group here.

Exceptional growth potential with flawless balance sheet

KAMBI is an attractive stock for growth-seeking investors, with an expected earnings growth of 37% in the upcoming year. Earnings growth is paired with an eye-catching top-line trajectory of 53%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. KAMBI'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. KAMBI appears to have made good use of debt, producing operating cash levels of 2.85x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

OM:KAMBI Past and Future Earnings, September 26th 2019
OM:KAMBI Past and Future Earnings, September 26th 2019

Next Steps:

For Kambi Group, I've put together three essential aspects you should look at:

  1. Historical Performance: What has KAMBI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is KAMBI 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 KAMBI is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KAMBI? 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.

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