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A Spotlight On IAR Systems Group AB (publ)'s (STO:IAR B) Fundamentals

Simply Wall St

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I've been keeping an eye on IAR Systems Group AB (publ) (STO:IAR B) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe IAR B has a lot to offer. Basically, it is a financially-sound company with an impressive history of dividend payments and a buoyant growth outlook. 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 IAR Systems Group here.

Excellent balance sheet with reasonable growth potential and pays a dividend

Investors seeking high cash growth potential should consider IAR B, with forecasted operating cash flow growth of 93%. This underlies the notable 23% return on equity over the next few years leading up to 2022. IAR B'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 IAR B manages its cash and cost levels well, which is a key determinant of the company’s health. IAR B currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, 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.

OM:IAR B Past and Future Earnings, July 19th 2019

IAR B is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

OM:IAR B Historical Dividend Yield, July 19th 2019

Next Steps:

For IAR Systems Group, I've put together three key factors you should further examine:

  1. Historical Performance: What has IAR B'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.
  2. Valuation: What is IAR B 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 IAR B is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IAR B? 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.