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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Jagran Prakashan Limited (NSE:JAGRAN), it is a financially-sound company with a strong history superior dividend payments, trading at a great value. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Jagran Prakashan here.
Flawless balance sheet established dividend payer
JAGRAN's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that JAGRAN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. JAGRAN's has produced operating cash levels of 1.14x total debt over the past year, which implies that JAGRAN's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. JAGRAN's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of JAGRAN's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the media industry, JAGRAN is also trading below its peers, relative to earnings generated. This further reaffirms that JAGRAN is potentially undervalued.
For those seeking income streams from their portfolio, JAGRAN is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.4%, making it one of the best dividend companies in the market.
Next Steps:
For Jagran Prakashan, I've compiled three important aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for JAGRAN’s future growth? Take a look at our free research report of analyst consensus for JAGRAN’s outlook.
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Historical Performance: What has JAGRAN'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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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JAGRAN? 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.