A Spotlight On Johnson Outdoors Inc’s (NASDAQ:JOUT) Fundamentals
Attractive stocks have exceptional fundamentals. In the case of Johnson Outdoors Inc (NASDAQ:JOUT), there’s is a financially-robust company with a a strong track record of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Johnson Outdoors here.
Flawless balance sheet and good value
JOUT has a strong track record of performance. In the previous year, JOUT delivered an impressive double-digit return of 10% Not surprisingly, JOUT outperformed its industry which returned 7.7%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. JOUT’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that JOUT manages its cash and cost levels well, which is a crucial insight into the health of the company. JOUT currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-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.
JOUT’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of JOUT’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, JOUT’s share price is trading below the group’s average. This bolsters the proposition that JOUT’s price is currently discounted.
Next Steps:
For Johnson Outdoors, I’ve compiled three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for JOUT’s future growth? Take a look at our free research report of analyst consensus for JOUT’s outlook.
Dividend Income vs Capital Gains: Does JOUT return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from JOUT as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JOUT? 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.
