Should Crown Resorts Limited (ASX:CWN) Be Your Next Stock Pick?

I’ve been keeping an eye on Crown Resorts Limited (ASX:CWN) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CWN has a lot to offer. Basically, it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Crown Resorts here.

Flawless balance sheet with solid track record

In the previous year, CWN has ramped up its bottom line by 58.26%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 33.00%. which paints a buoyant picture for the company. CWN’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 CWN has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CWN seems to have put its debt to good use, generating operating cash levels of 0.4x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

ASX:CWN Income Statement Jun 20th 18

Next Steps:

For Crown Resorts, I’ve compiled three key factors you should look at:

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

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

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CWN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.