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Should You Buy Fraser and Neave Limited (SGX:F99) Based On These Aspects?

Fraser and Neave Limited (SGX:F99) 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 F99, it is a company with great financial health as well as a a great track record of performance. 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 Fraser and Neave here.

Outstanding track record with adequate balance sheet

In the past couple of years, F99 has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 43.44% return to shareholders, which paints a buoyant picture for the company. F99’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. With a debt-to-equity ratio of 37.18%, F99’s debt level is reasonable. This means that F99’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt.

SGX:F99 Income Statement Jun 20th 18
SGX:F99 Income Statement Jun 20th 18

Next Steps:

For Fraser and Neave, there are three relevant factors you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for F99’s future growth? Take a look at our free research report of analyst consensus for F99’s outlook.

  2. Valuation: What is F99 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 F99 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of F99? 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.