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A Spotlight On Monadelphous Group Limited's (ASX:MND) Fundamentals

Simply Wall St

Monadelphous Group Limited (ASX:MND) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of MND, it is a company with impressive financial health as well as a buoyant future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Monadelphous Group here.

Flawless balance sheet with high growth potential

Investors in search for stocks with room to flourish should look no further than MND, with its expected earnings growth of 22% which is expected to flow into an impressive return on equity of 22% over the next couple of years. MND 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. MND's has produced operating cash levels of 4.84x total debt over the past year, which implies that MND's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ASX:MND Past and Future Earnings, September 8th 2019

Next Steps:

For Monadelphous Group, I've put together three relevant factors you should further examine:

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