Yahoo Finance Spotlight On Metcash Limited’s (ASX:MTS) Fundamentals
Metcash Limited (ASX:MTS) 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 MTS, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Metcash here.
Flawless balance sheet and good value
MTS’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that MTS has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MTS seems to have put its debt to good use, generating operating cash levels of 2.58x 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. MTS is currently trading at a price-to-equity ratio of 14.29x relative to the industry ratio of 20.54x and market ratio of 17.06x, which means it is relatively cheaper than its peers.
Next Steps:
For Metcash, I’ve put together three relevant factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for MTS’s future growth? Take a look at our free research report of analyst consensus for MTS’s outlook.
Historical Performance: What has MTS’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 MTS? 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.
