Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Panama Petrochem Limited (NSE:PANAMAPET) due to its excellent fundamentals in more than one area. PANAMAPET is a company with great financial health as well as a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Panama Petrochem here.
Excellent balance sheet with proven track record
In the previous year, PANAMAPET has ramped up its bottom line by 41.20%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, PANAMAPET also outperformed its industry, which delivered a growth of 16.68%. This is what investors like to see! PANAMAPET is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. PANAMAPET appears to have made good use of debt, producing operating cash levels of 1.3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Panama Petrochem, I’ve compiled three fundamental factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for PANAMAPET’s future growth? Take a look at our free research report of analyst consensus for PANAMAPET’s outlook.
- Valuation: What is PANAMAPET 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 PANAMAPET is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PANAMAPET? 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.