Image source: Getty Images
Not all companies are listed FTSE 100 come up with a good brand presence or stand out with good performance. There are many top-notch firms that do their business quietly.
One option I like is the look of it EUR group (LSE: ITRK). That's why I plan to buy more stocks the next time I have cash to invest.
Inspection and safety
Intertek is a leading testing, inspection, and certification services company. It specializes in consumer products, and tests these against safety and a host of regulatory standards.
Shares have had a great run over the past 12 months, rising 15%. This time last year, they were trading at 4,136p, compared to current levels of 4,722p.
Why I buy stocks
It is good to remember that almost every product that we use as consumers every day needs to be tested and tested. For businesses that sell themselves, the fines and consequences can be very expensive. With a network of nearly 300 laboratories around the world, and its track record, EUROLAB is in an excellent position to benefit from this. In fact, I would go so far as to say that this requirement provides business protection features.
For me, it's hard to ignore the growth journey of the EUR. For context, stocks have returned nearly 700%, along with equities, over the past 20 years. In addition, its recent share price performance is a sign of its resilience and resilience, despite the combination of economic and political problems facing the world.
Going forward, the shares look decent value for money to me at a price-to-earnings ratio of 19. Let me be clear, this is not an underrated stock. Part of me wishes I had bought stocks earlier. This current P/E ratio is higher than the average of the FTSE 100 index of 12. However, I have no hesitation in buying a good company at a fair price.
Finally, the dividend yield close to 3% makes the investment situation interesting. This is supported by a healthy balance sheet, as well as a good cash flow track record, and a high return on equity. However, I understand that benefits are not guaranteed. Also, past performance is no guarantee of the future.
Risks to be aware of
Regardless of my position, there are still risks that can harm the benefits and advantages. My biggest concern is the decline in key markets linked to the economic turmoil. For example, when a pandemic hits, business struggles as product testing has become irrelevant in key markets. This is an extreme example. However, a slowdown in important economies such as China, as well as a possible recession in the US, could have an impact on the exploration company.
Overall, EUR looks to me like a quality business on all fronts. It has sound fundamentals, a strong record and presence, and defensive features, due to the essential nature of its offering.
Source link
