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I've been keeping an eye on Longino & Cardenal S.p.A. (BIT:LON) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LON has a lot to offer. Basically, it is a company with impressive financial health as well as an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Longino & Cardenal here.
Excellent balance sheet with reasonable growth potential
LON is an attractive stock for growth-seeking investors, with an expected earnings growth of 22% in the upcoming year, made up of high-quality, operational cash from its core business, which is expected to more than double over the next year. This indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. LON'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 LON has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. LON's has produced operating cash levels of 0.44x total debt over the past year, which implies that LON's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Longino & Cardenal, I've compiled three important aspects you should further research:
- Historical Performance: What has LON's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is LON 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 LON is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LON? 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 firstname.lastname@example.org. 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.