Yahoo Finance Macmahon Holdings Limited (ASX:MAH) Has Attractive Fundamentals
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!
Macmahon Holdings Limited (ASX:MAH) 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 MAH, it is a financially-robust company with a a strong track record of performance, trading at a discount. 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 Macmahon Holdings here.
Flawless balance sheet and good value
MAH 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 MAH outperformed its past performance, its growth also surpassed the Metals and Mining industry expansion, which generated a 14% earnings growth. This is an optimistic signal for the future. MAH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that MAH has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MAH appears to have made good use of debt, producing operating cash levels of 0.63x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
MAH's shares are now trading at a price below its true value based on its PE ratio of 10.25x, compared to the industry and wider stock market ratio, making it a relatively cheap stock compared to its peers.
Next Steps:
For Macmahon Holdings, I've compiled three pertinent factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for MAH’s future growth? Take a look at our free research report of analyst consensus for MAH’s outlook.
Dividend Income vs Capital Gains: Does MAH return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from MAH as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MAH? 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.
