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 adesso AG (FRA:ADN1), it is a company with great financial health as well as a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on adesso here.
Solid track record with adequate balance sheet
ADN1 delivered a satisfying double-digit returns of 20.5% in the most recent year Unsurprisingly, ADN1 surpassed the IT industry return of 17.8%, which gives us more confidence of the company’s capacity to drive earnings going forward. ADN1 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. ADN1 seems to have put its debt to good use, generating operating cash levels of 0.55x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For adesso, I’ve compiled three essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for ADN1’s future growth? Take a look at our free research report of analyst consensus for ADN1’s outlook.
- Valuation: What is ADN1 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 ADN1 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ADN1? 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 past 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. For errors that warrant correction please contact the editor at email@example.com.