A Look At Clover Corporation Limited’s (ASX:CLV) Exceptional Fundamentals
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Clover Corporation Limited (ASX:CLV) 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 CLV, it is a financially-robust company with an impressive track record and a buoyant growth outlook. 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, take a look at the report on Clover here.
High growth potential with solid track record
CLV is an attractive stock for growth-seeking investors, with an expected earnings growth of 24% in the upcoming year underlying the notable 27% return on equity over the next few years leading up to 2022. CLV delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, CLV also outperformed its industry, which delivered a growth of 12%. This is an notable feat for the company.
CLV’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 CLV has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CLV appears to have made good use of debt, producing operating cash levels of 0.97x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Clover, I’ve compiled three essential factors you should look at:
Valuation: What is CLV 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 CLV is currently mispriced by the market.
Dividend Income vs Capital Gains: Does CLV 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 CLV as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CLV? 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.
