Attractive stocks have exceptional fundamentals. In the case of Mensch und Maschine Software SE (FRA:MUM), there's is a financially-healthy company with a great history and a buoyant growth outlook. 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 Mensch und Maschine Software here.
Outstanding track record with excellent balance sheet and pays a dividend
Over the past year, MUM has grown its earnings by 31%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 23%. which is an optimistic signal for the future.
MUM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MUM's has produced operating cash levels of 0.55x total debt over the past year, which implies that MUM's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Mensch und Maschine Software, there are three essential factors you should further examine:
- Valuation: What is MUM 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 MUM is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does MUM return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from MUM as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MUM? 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.