Yahoo Finance These Fundamentals Make Elders Limited (ASX:ELD) Truly Worth Looking At
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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 Elders Limited (ASX:ELD), it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Elders here.
Good value with adequate balance sheet
ELD'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. ELD’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps ELD expand. ELD is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ELD's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the food industry, ELD is also trading below its peers, relative to earnings generated. This further reaffirms that ELD is potentially undervalued.
Next Steps:
For Elders, I've put together three relevant aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for ELD’s future growth? Take a look at our free research report of analyst consensus for ELD’s outlook.
Historical Performance: What has ELD's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ELD? 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.
