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I've been keeping an eye on PEC Ltd. (SGX:IX2) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe IX2 has a lot to offer. Basically, it is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on PEC here.
Solid track record with adequate balance sheet
Over the past year, IX2 has grown its earnings by 31%, with its most recent figure exceeding its annual average over the past five years. Not only did IX2 outperformed its past performance, its growth also surpassed the Construction industry expansion, which generated a -37% earnings growth. This is an notable feat for the company. IX2 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 a key determinant of the company’s health. With a debt-to-equity ratio of 7.9%, IX2’s debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future.
For PEC, I've put together three relevant factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for IX2’s future growth? Take a look at our free research report of analyst consensus for IX2’s outlook.
- Valuation: What is IX2 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 IX2 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IX2? 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.