I've been keeping an eye on Siebert Financial Corp. (NASDAQ:SIEB) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SIEB has a lot to offer. Basically, it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Siebert Financial here.
Flawless balance sheet with solid track record
In the past couple of years, SIEB has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 55%, which is an optimistic signal for the future. SIEB'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 indicates that SIEB has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Investors should not worry about SIEB’s debt levels because the company has none! This means it is running its business only on equity capital funding, 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 Siebert Financial, there are three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for SIEB’s future growth? Take a look at our free research report of analyst consensus for SIEB’s outlook.
- Valuation: What is SIEB 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 SIEB is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SIEB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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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.