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ZCCM Investments Holdings Plc (EPA:MLZAM) Has Attractive Fundamentals

Simply Wall St

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ZCCM Investments Holdings Plc (EPA:MLZAM) 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 MLZAM, it is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on ZCCM Investments Holdings here.

Flawless balance sheet with proven track record

Over the past few years, MLZAM has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did MLZAM outperformed its past performance, its growth also surpassed the Metals and Mining industry expansion, which generated a -44% earnings growth. This is what investors like to see! MLZAM'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 suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. Looking at MLZAM's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

ENXTPA:MLZAM Income Statement, April 30th 2019

Next Steps:

For ZCCM Investments Holdings, I've compiled three pertinent aspects you should look at:

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