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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Systemax Inc. (NYSE:SYX), it is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Systemax here.
Flawless balance sheet with proven track record
Over the past few years, SYX has demonstrated a proven ability to generate robust returns of 36% Unsurprisingly, SYX surpassed the Trade Distributors industry return of 12%, which gives us more confidence of the company's capacity to drive earnings going forward. SYX'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 implies that SYX manages its cash and cost levels well, which is an important determinant of the company’s health. SYX currently has no debt on its balance sheet. 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 fundamental aspects you should look at:
- 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!
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 firstname.lastname@example.org. 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.