13 Stocks With Strong Balance Sheets

The coronavirus crisis has been tough for debt-ridden companies, but a number of FTSE firms are in rude health and look undervalued after the sell-off 

James Gard 27 April, 2020 | 10:50AM
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The coronavirus crisis has shone an unforgiving light on the fragility of company finances, especially those in sectors most exposed to the shutdown like retail, travel and leisure. The rush to cut dividends is one way many firms are trying to shore up their balance sheets ahead of an expected economic slowdown. But what about the companies in better shape?

Morningstar scores companies’ financial health on a combination of factors, including low debt and strong cash, and rates these between Weak, Moderate and Strong. We have screened FTSE companies to find those with strong balance sheets, which are also trading below their fair value and rated four or five stars by Morningstar analysts. While the share prices of these firms have all been hit in recent weeks, their solid financial position and competitive advantage could make them bargains for the brave. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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James Gard  is content editor for Morningstar.co.uk