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Attractive stocks have exceptional fundamentals. In the case of Forbo Holding AG (VTX:FORN), there's is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Forbo Holding here.
Flawless balance sheet with solid track record
In the past couple of years, FORN has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 23%, which is what investors like to see! FORN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Investors should not worry about FORN’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a CHF2.8b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Forbo Holding, there are three relevant aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for FORN’s future growth? Take a look at our free research report of analyst consensus for FORN’s outlook.
- Valuation: What is FORN 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 FORN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FORN? 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 email@example.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.