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Why We Think CML Group Limited (ASX:CGR) Could Be Worth Looking At

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CML Group Limited (ASX:CGR) 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 CGR, it has a a great history of performance as well as a buoyant future outlook going forward. 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, read the full report on CML Group here.

Solid track record with high growth potential

One reason why investors are attracted to CGR is its earnings growth potential in the near future of 25% which is expected to flow into an impressive return on equity of 22% over the next couple of years. CGR delivered a bottom-line expansion of 73% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, CGR also outperformed its industry, which delivered a growth of 12%. This is an notable feat for the company.

ASX:CGR Past and Future Earnings, April 8th 2019
ASX:CGR Past and Future Earnings, April 8th 2019

Next Steps:

For CML Group, there are three pertinent aspects you should further examine:

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  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is CGR 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 CGR is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CGR? 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.