Does The Data Make VERBIO Vereinigte BioEnergie AG (ETR:VBK) An Attractive Investment?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

VERBIO Vereinigte BioEnergie AG (ETR:VBK) 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 VBK, it is a company with great financial health as well as a a strong history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on VERBIO Vereinigte BioEnergie here.

Flawless balance sheet with solid track record

In the past couple of years, VBK has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, VBK also outperformed its industry, which delivered a growth of 43%. This is an optimistic signal for the future. VBK 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. VBK's has produced operating cash levels of 8.02x total debt over the past year, which implies that VBK's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

XTRA:VBK Income Statement, June 25th 2019
XTRA:VBK Income Statement, June 25th 2019

Next Steps:

For VERBIO Vereinigte BioEnergie, there are three fundamental factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for VBK’s future growth? Take a look at our free research report of analyst consensus for VBK’s outlook.

  2. Valuation: What is VBK 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 VBK is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VBK? 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.