James Latham Plc Value Analysis (LSE:LTHM)

James Latham Plc Value Analysis (LSE:LTHM)

 James Latham Plc is the UK’s biggest independent timber and panel products distributor.

The value analysis of James Latham Plc highlighted how conservatively financed the company is.  Owners of common stock generally have to be concerned about the level of debt and higher ranking securities in the financial structure of a company.  All companies can have problems during bad times and make excellent profits during the good times.  Owners of common stock want to know that all or the majority of profits in the good times accrue to the common stockholders.  Similarly, in bad times owners of the common stock want to know that the requirement to repay interest or capital to senior security holders will not mean that the common stockholders are wiped out.

LTHM is a particularly strong candidate for common stock investors who prefer low risk in bad times and full access to profits in the good times.  LTHM does have one security senior to the common stock holders, which is the preferred stock listed in London with ticker LTHP.  LTHM also has a small a mount of debt and a small liability to the pension fund.  However, the financial structure of the company is very conservative for holders of the common stock.

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