What Makes 1&1 Drillisch AG (FRA:DRI) An Attractive Investment?
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 1&1 Drillisch AG (FRA:DRI), it is a company with robust financial health as well as an optimistic future outlook. 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, take a look at the report on 1&1 Drillisch here.
Flawless balance sheet with reasonable growth potential
Investors seeking high cash growth potential should consider DRI, with forecasted operating cash flow growth of triple-digits in the upcoming year. This is expected to flow down into an impressive return on equity of 21.01% over the next couple of years. DRI’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 a crucial insight into the health of the company. Looking at DRI’s capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is rather impressive for a €11.30b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For 1&1 Drillisch, I’ve compiled three essential aspects you should look at:
Historical Performance: What has DRI’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.
Valuation: What is DRI 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 DRI is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DRI? 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.
