In This Article:
SKF India Limited (NSE:SKFINDIA) 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 SKFINDIA, it is a financially-sound , dividend-paying company with a an impressive history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on SKF India here.
Excellent balance sheet with solid track record and pays a dividend
Over the past year, SKFINDIA has grown its earnings by 26.1%, with its most recent figure exceeding its annual average over the past five years. Not only did SKFINDIA outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 25.4% earnings growth. This paints a buoyant picture for the company. SKFINDIA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SKFINDIA has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. SKFINDIA’s has produced operating cash levels of 4.32x total debt over the past year, which implies that SKFINDIA’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that SKFINDIA is a great dividend company, with a current yield standing at 0.7%. SKFINDIA has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For SKF India, I’ve compiled three essential factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for SKFINDIA’s future growth? Take a look at our free research report of analyst consensus for SKFINDIA’s outlook.
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Valuation: What is SKFINDIA 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 SKFINDIA 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 SKFINDIA? 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.