June Fundamental Stock Pick: Sabre Corporation (NASDAQ:SABR)

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Sabre Corporation (NASDAQ:SABR) due to its excellent fundamentals in more than one area. SABR is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Sabre here.

Solid track record with adequate balance sheet

SABR has a strong track record of performance. In the previous year, SABR delivered an impressive double-digit return of 31.01% Unsurprisingly, SABR surpassed the IT industry return of 14.77%, which gives us more confidence of the company’s capacity to drive earnings going forward. SABR’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. SABR appears to have made good use of debt, producing operating cash levels of 0.22x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:SABR Income Statement Jun 16th 18

Next Steps:

For Sabre, there are three key factors you should further research:

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

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

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