Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Astronics Corporation (NASDAQ:ATRO) due to its excellent fundamentals in more than one area. ATRO is a company with great financial health as well as a an impressive history 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 Astronics here.
Flawless balance sheet with solid track record
In the past couple of years, ATRO has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 24% return to shareholders, which is an notable feat for the company. ATRO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that ATRO has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. ATRO's has produced operating cash levels of 0.46x total debt over the past year, which implies that ATRO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Astronics, there are three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ATRO’s future growth? Take a look at our free research report of analyst consensus for ATRO’s outlook.
- Valuation: What is ATRO 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 ATRO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ATRO? 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 firstname.lastname@example.org. 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.