These Factors Make Delfi Limited (SGX:P34) An Interesting Investment

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Delfi Limited (SGX:P34) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of P34, 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 understanding where the figures come from and want to see the analysis, read the full report on Delfi here.

Excellent balance sheet with proven track record

Over the past year, P34 has grown its earnings by 4.3%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, P34 also outperformed its industry, which delivered a growth of -3.0%. This is what investors like to see! P34'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 P34 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. P34 appears to have made good use of debt, producing operating cash levels of 0.24x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SGX:P34 Income Statement, July 19th 2019
SGX:P34 Income Statement, July 19th 2019

Next Steps:

For Delfi, I've compiled three relevant aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for P34’s future growth? Take a look at our free research report of analyst consensus for P34’s outlook.

  2. Valuation: What is P34 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 P34 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of P34? 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.

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