In This Article:
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on ITC Limited (NSE:ITC) due to its excellent fundamentals in more than one area. ITC is a financially-healthy , dividend-paying company with a strong track record of performance. 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, read the full report on ITC here.
Flawless balance sheet established dividend payer
ITC delivered a bottom-line expansion of 12% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 22%. which is an optimistic signal for the future. ITC's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ITC manages its cash and cost levels well, which is an important determinant of the company’s health. ITC seems to have put its debt to good use, generating operating cash levels of 936x 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, ITC is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.1%.
Next Steps:
For ITC, I've compiled three fundamental aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for ITC’s future growth? Take a look at our free research report of analyst consensus for ITC’s outlook.
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Valuation: What is ITC 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 ITC 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 ITC? 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.