In This Article:
I’ve been keeping an eye on Delta Corp Limited (NSE:DELTACORP) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe DELTACORP has a lot to offer. Basically, it is a financially-healthy company with a great track record and an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Delta here.
Flawless balance sheet with reasonable growth potential
Over the past few years, DELTACORP has demonstrated a proven ability to generate robust returns of 9.0% Not surprisingly, DELTACORP outperformed its industry which returned 4.9%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward.
DELTACORP’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. DELTACORP seems to have put its debt to good use, generating operating cash levels of 153x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Delta, I’ve put together three important aspects you should further examine:
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Valuation: What is DELTACORP 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 DELTACORP is currently mispriced by the market.
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Dividend Income vs Capital Gains: Does DELTACORP return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from DELTACORP as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DELTACORP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.