Looking At Frencken Group Limited (SGX:E28) From All Angles
Frencken Group Limited (SGX:E28) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of E28, it is a financially-robust , dividend-paying company with a strong history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Frencken Group here.
Flawless balance sheet with solid track record and pays a dividend
In the previous year, E28 has ramped up its bottom line by 48%, with its latest earnings level surpassing its average level over the last five years. Not only did E28 outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 14% earnings growth. This is an notable feat for the company. E28'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 E28 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. E28's has produced operating cash levels of 0.67x total debt over the past year, which implies that E28's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
E28 is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Frencken Group, I've compiled three key factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for E28’s future growth? Take a look at our free research report of analyst consensus for E28’s outlook.
Valuation: What is E28 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 E28 is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of E28? 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.
