Retained Earnings and Company Valuation

I was looking into a stock with solid FCF and NI over the last 4-5 years but on the BS side there was one big red; the retained earnings. This made me ask myself the importance of retained earnings in such a context where although there are improvements, there is still time for retained earnings to move black and the factors that caused this company to have the initial large negative total. I need to look this specific case more but a few minutes into googling I ran into this article on the importance of retained earnings on valuation and wanted to share the link.

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