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Why Fundamental Investors Might Love Harworth Group plc (LON:HWG)

Simply Wall St

I've been keeping an eye on Harworth Group plc (LON:HWG) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe HWG has a lot to offer. Basically, it is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Harworth Group here.

Excellent balance sheet with solid track record

In the previous year, HWG has ramped up its bottom line by 13%, with its latest earnings level surpassing its average level over the last five years. Not only did HWG outperformed its past performance, its growth also exceeded the Real Estate industry expansion, which generated a 8.0% earnings growth. This is an notable feat for the company. HWG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that HWG has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. HWG's has produced operating cash levels of 0.41x total debt over the past year, which implies that HWG's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:HWG Income Statement, October 13th 2019

Next Steps:

For Harworth Group, I've compiled three important factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for HWG’s future growth? Take a look at our free research report of analyst consensus for HWG’s outlook.
  2. Valuation: What is HWG 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 HWG is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HWG? 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.