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Should Robert Walters plc (LON:RWA) Be Your Next Stock Pick?

Simply Wall St

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Robert Walters plc (LON:RWA) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of RWA, it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Robert Walters here.

Flawless balance sheet with solid track record

RWA delivered a satisfying double-digit returns of 23% in the most recent year Not surprisingly, RWA outperformed its industry which returned 14%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. RWA 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 crucial insight into the health of the company. RWA seems to have put its debt to good use, generating operating cash levels of 11.04x 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.

LSE:RWA Income Statement, June 14th 2019

Next Steps:

For Robert Walters, there are three fundamental aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for RWA’s future growth? Take a look at our free research report of analyst consensus for RWA’s outlook.
  2. Valuation: What is RWA 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 RWA is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RWA? 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 editorial-team@simplywallst.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.