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 Bergs Timber AB (publ) (STO:BRG B), 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. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Bergs Timber here.
Solid track record with adequate balance sheet
BRG B 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. Not only did BRG B outperformed its past performance, its growth also exceeded the Forestry industry expansion, which generated a 26% earnings growth. This is an notable feat for the company. BRG B'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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. BRG B appears to have made good use of debt, producing operating cash levels of 0.27x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Bergs Timber, I've put together three important aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for BRG B’s future growth? Take a look at our free research report of analyst consensus for BRG B’s outlook.
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Valuation: What is BRG 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 BRG B is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BRG B? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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