Piquadro S.p.A. (BIT:PQ) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of PQ, it is a company with great financial health as well as a an impressive history 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 Piquadro here.
Solid track record with adequate balance sheet
Over the past few years, PQ has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 47%, which is an notable feat for the company. PQ's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that PQ has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. PQ’s debt-to-equity ratio stands at 29%, which means its debt level is reasonable. 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 Piquadro, I've put together three pertinent aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for PQ’s future growth? Take a look at our free research report of analyst consensus for PQ’s outlook.
- Valuation: What is PQ 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 PQ is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PQ? 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.