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A Spotlight On MJ Gleeson plc's (LON:GLE) Fundamentals

Simply Wall St

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MJ Gleeson plc (LON:GLE) 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 GLE, it is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on MJ Gleeson here.

Flawless balance sheet with solid track record

Over the past year, GLE has grown its earnings by 31%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, GLE also outperformed its industry, which delivered a growth of 11%. This is an optimistic signal for the future. GLE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that GLE manages its cash and cost levels well, which is an important determinant of the company’s health. Investors should not worry about GLE’s debt levels because the company has none! This means it is running its business only on equity capital funding, 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.

LSE:GLE Income Statement, July 4th 2019

Next Steps:

For MJ Gleeson, I've compiled three pertinent factors you should further examine:

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