Yahoo Finance Noni B Limited (ASX:NBL) Has Attractive Fundamentals, Here’s Why
Noni B Limited (ASX:NBL) 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 NBL, it is a financially-healthy company with an impressive history and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Noni B here.
Exceptional growth potential with proven track record
Bullish market analysts are forecasting fast-growing NBL to deliver an exceptional triple-digit sales growth rate over the next year. This underlies the notable 27.47% return on equity over the next few years leading up to 2021. Over the past few years, NBL has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, NBL also outperformed its industry, which delivered a growth of 8.59%. This paints a buoyant picture for the company.
NBL’s debt-to-equity ratio stands at 29.25%, which means its debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. NBL appears to have made good use of debt, producing operating cash levels of 1.62x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Noni B, I’ve compiled three important factors you should look at:
Valuation: What is NBL 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 NBL is currently mispriced by the market.
Dividend Income vs Capital Gains: Does NBL 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 NBL as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NBL? 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.
