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I've been keeping an eye on United Overseas Insurance Limited (SGX:U13) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe U13 has a lot to offer. Basically, it is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on United Overseas Insurance here.
Proven track record with adequate balance sheet
In the previous year, U13 has ramped up its bottom line by 0.9%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, U13 also outperformed its industry, which delivered a growth of -12%. This is an notable feat for the company. U13'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 U13 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. U13's has produced operating cash levels of 2.03x total debt over the past year, which implies that U13's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For United Overseas Insurance, I've compiled three essential aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for U13’s future growth? Take a look at our free research report of analyst consensus for U13’s outlook.
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Valuation: What is U13 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 U13 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 U13? 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.