Brief Commentary On Food Empire Holdings Limited's (SGX:F03) Fundamentals

Simply Wall St

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Food Empire Holdings Limited (SGX:F03) due to its excellent fundamentals in more than one area. F03 is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Food Empire Holdings here.

Solid track record with excellent balance sheet

Over the past year, F03 has grown its earnings by 55%, with its most recent figure exceeding its annual average over the past five years. Not only did F03 outperformed its past performance, its growth also surpassed the Food industry expansion, which generated a -17% earnings growth. This is what investors like to see! F03's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that F03 manages its cash and cost levels well, which is an important determinant of the company’s health. F03 appears to have made good use of debt, producing operating cash levels of 0.45x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SGX:F03 Income Statement, October 10th 2019

Next Steps:

For Food Empire Holdings, I've put together three relevant factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for F03’s future growth? Take a look at our free research report of analyst consensus for F03’s outlook.
  2. Valuation: What is F03 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 F03 is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of F03? 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.