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Why We Think Salzer Electronics Limited (NSE:SALZER) Could Be Worth Looking At

Simply Wall St

As an investor, I look for investments which do not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Salzer Electronics Limited (NSE:SALZER), it 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. For those interested in digging a bit deeper into my commentary, take a look at the report on Salzer Electronics here.

Excellent balance sheet with solid track record

SALZER delivered a bottom-line expansion of 23% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did SALZER outperformed its past performance, its growth also surpassed the Electrical industry expansion, which generated a 17% earnings growth. This is what investors like to see! SALZER'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 SALZER has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. SALZER seems to have put its debt to good use, generating operating cash levels of 0.35x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NSEI:SALZER Income Statement, August 23rd 2019

Next Steps:

For Salzer Electronics, there are three important factors you should look at:

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