These Fundamentals Make iEnergizer Limited (LON:IBPO) Truly Worth Looking At

iEnergizer Limited (LON:IBPO) 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 IBPO, it is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on iEnergizer here.

Flawless balance sheet with outstanding track record

IBPO delivered a bottom-line expansion of 55% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 23%. which is an notable feat for the company. IBPO'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 an important determinant of the company’s health. IBPO seems to have put its debt to good use, generating operating cash levels of 0.7x 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.

AIM:IBPO Income Statement, August 24th 2019
AIM:IBPO Income Statement, August 24th 2019

Next Steps:

For iEnergizer, I've compiled three important aspects you should further research:

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

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

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