Is Hanza Holding AB (publ) (STO:HANZA) Potentially Underrated?
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I’ve been keeping an eye on Hanza Holding AB (publ) (STO:HANZA) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe HANZA has a lot to offer. Basically, it is a financially-healthy company with an impressive track record and a excellent future outlook. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Hanza Holding here.
Excellent balance sheet and good value
In the past couple of years, HANZA has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did HANZA outperformed its past performance, its growth also exceeded the Electronic industry expansion, which generated a 22% earnings growth. This is what investors like to see!
HANZA’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 implies that HANZA manages its cash and cost levels well, which is an important determinant of the company’s health. HANZA seems to have put its debt to good use, generating operating cash levels of 0.26x 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.
Next Steps:
For Hanza Holding, there are three relevant factors you should further examine:
Valuation: What is HANZA 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 HANZA is currently mispriced by the market.
Dividend Income vs Capital Gains: Does HANZA return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from HANZA as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HANZA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
