In This Article:
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 Indutrade AB (publ) (STO:INDT), it is a financially-healthy company with a an impressive track record of dividend payments and a excellent growth outlook. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Indutrade here.
Excellent balance sheet with reasonable growth potential and pays a dividend
INDT is expected to churn out cash in the short term, with its operating cash flow predicted to expand by 60.0%. This underlies the notable 22.6% return on equity over the next few years leading up to 2021. INDT’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 INDT has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. INDT seems to have put its debt to good use, generating operating cash levels of 0.24x 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.
For those seeking income streams from their portfolio, INDT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.6%.
Next Steps:
For Indutrade, there are three key aspects you should further examine:
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Historical Performance: What has INDT’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 INDT 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 INDT 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 INDT? 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.