ABB Ltd (VTX:ABBN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ABBN, it is a financially-robust company with a great track record of dividend payments and a excellent future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on ABB here.
Established dividend payer with reasonable growth potential
Investors in search for stocks with room to flourish should look no further than ABBN, with its expected earnings growth of 30% which is expected to flow into an impressive return on equity of 24% over the next couple of years. ABBN's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ABBN has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. ABBN appears to have made good use of debt, producing operating cash levels of 0.21x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, ABBN is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.3%, making it one of the best dividend companies in the market.
Next Steps:
For ABB, I've put together three essential aspects you should further research:
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Historical Performance: What has ABBN's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Valuation: What is ABBN 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 ABBN is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ABBN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.