Yahoo Finance A Holistic Look At The Citadel Group Limited (ASX:CGL)
The Citadel Group Limited (ASX:CGL) 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 CGL, it is a company with strong financial health as well as a excellent future outlook. 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 Citadel Group here.
Excellent balance sheet with reasonable growth potential
CGL is an attractive stock for growth-seeking investors, with an expected earnings growth of 28% in the upcoming year, made up of high-quality, operational cash from its core business, which is expected to increase by 63% next year. This indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. CGL's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that CGL manages its cash and cost levels well, which is a key determinant of the company’s health. CGL's has produced operating cash levels of 1.27x total debt over the past year, which implies that CGL's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Citadel Group, I've compiled three relevant factors you should further examine:
Historical Performance: What has CGL'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.
Valuation: What is CGL 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 CGL is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CGL? 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.
