N.V. Nederlandsche Apparatenfabriek Nedap (AMS:NEDAP): A Fundamentally Attractive Investment

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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 N.V. Nederlandsche Apparatenfabriek Nedap (AMS:NEDAP), it is a company with great financial health as well as a a great history of performance. 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, read the full report on N.V. Nederlandsche Apparatenfabriek Nedap here.

Excellent balance sheet with solid track record

In the previous year, NEDAP has ramped up its bottom line by 84%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 24%, which is what investors like to see! NEDAP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that NEDAP has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. NEDAP’s has produced operating cash levels of 0.59x total debt over the past year, which implies that NEDAP’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTAM:NEDAP Income Statement Export January 22nd 19
ENXTAM:NEDAP Income Statement Export January 22nd 19

Next Steps:

For N.V. Nederlandsche Apparatenfabriek Nedap, I’ve compiled three key factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for NEDAP’s future growth? Take a look at our free research report of analyst consensus for NEDAP’s outlook.

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

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NEDAP? 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 editorial-team@simplywallst.com.

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