U.S. Markets open in 5 hrs 5 mins

Why Fundamental Investors Might Love dotdigital Group Plc (LON:DOTD)

Rowena Monahan

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Attractive stocks have exceptional fundamentals. In the case of dotdigital Group Plc (LON:DOTD), there’s is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on dotdigital Group here.

Flawless balance sheet with solid track record

In the previous year, DOTD has ramped up its bottom line by 20%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 23%. which paints a buoyant picture for the company. DOTD’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that DOTD has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. DOTD appears to have made good use of debt, producing operating cash levels of 2526x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

AIM:DOTD Income Statement Export February 13th 19

Next Steps:

For dotdigital Group, I’ve compiled three essential aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for DOTD’s future growth? Take a look at our free research report of analyst consensus for DOTD’s outlook.
  2. Valuation: What is DOTD 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 DOTD is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DOTD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.