Why KABE Group AB (publ.) (STO:KABE B) Could Have A Place In Your Portfolio

Simply Wall St
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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of KABE Group AB (publ.) (STO:KABE B), it is a company with great financial health as well as a a strong history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on KABE Group AB (publ.) here.

Excellent balance sheet with solid track record

KABE B delivered a bottom-line expansion of 24% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did KABE B outperformed its past performance, its growth also surpassed the Auto industry expansion, which generated a 3.9% earnings growth. This paints a buoyant picture for the company. KABE B's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. KABE B's has produced operating cash levels of 0.38x total debt over the past year, which implies that KABE B's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

OM:KABE B Income Statement, June 25th 2019
OM:KABE B Income Statement, June 25th 2019

Next Steps:

For KABE Group AB (publ.), I've compiled three key factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for KABE B’s future growth? Take a look at our free research report of analyst consensus for KABE B’s outlook.

  2. Valuation: What is KABE B 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 KABE B is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KABE B? 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.

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