U.S. Markets close in 5 hrs 9 mins

Why Frenkel Topping Group Plc (LON:FEN) Could Be Your Next Investment

Simply Wall St

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Frenkel Topping Group Plc (LON:FEN) due to its excellent fundamentals in more than one area. FEN is a company with impressive financial health as well as an optimistic growth outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Frenkel Topping Group here.

Flawless balance sheet with reasonable growth potential

FEN is an attractive stock for growth-seeking investors, with an expected earnings growth of 29% in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to more than double over the next year. This indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. FEN's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that FEN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. FEN currently 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.

AIM:FEN Past and Future Earnings, April 17th 2019

Next Steps:

For Frenkel Topping Group, I've put together three fundamental aspects you should further research:

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