Yahoo Finance A Spotlight On Uni-Select Inc.’s (TSE:UNS) Fundamentals
Uni-Select Inc. (TSE:UNS) 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 UNS, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Uni-Select here.
Good value with adequate balance sheet
UNS’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that UNS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. UNS’s has produced operating cash levels of 0.31x total debt over the past year, which implies that UNS’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. UNS is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if UNS’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the retail distributors industry, UNS is also trading below its peers, relative to earnings generated. This bolsters the proposition that UNS’s price is currently discounted.
Next Steps:
For Uni-Select, there are three pertinent aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for UNS’s future growth? Take a look at our free research report of analyst consensus for UNS’s outlook.
Historical Performance: What has UNS’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 UNS? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.