Alpha Pro Tech, Ltd. (NYSEMKT:APT) 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 APT, it is a company with great financial health as well as a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Alpha Pro Tech here.
Flawless balance sheet with solid track record
APT delivered a bottom-line expansion of 60% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, APT also outperformed its industry, which delivered a growth of 8.2%. This is an optimistic signal for the future. APT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that APT manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at APT's capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity 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.
For Alpha Pro Tech, I've compiled three pertinent aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for APT’s future growth? Take a look at our free research report of analyst consensus for APT’s outlook.
- Valuation: What is APT 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 APT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of APT? 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 email@example.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.