Why We Think EMIS Group plc (LON:EMIS) Could Be Worth Looking At

EMIS Group plc (LON:EMIS) 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 EMIS, it is a company with great financial health as well as a a great history of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on EMIS Group here.

Excellent balance sheet with proven track record

In the past couple of years, EMIS 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! Looking at EMIS's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. EMIS has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

AIM:EMIS Income Statement, August 21st 2019
AIM:EMIS Income Statement, August 21st 2019

Next Steps:

For EMIS Group, I've compiled three key aspects you should further research:

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

  2. Valuation: What is EMIS 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 EMIS is currently mispriced by the market.

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