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AGL Energy Limited (ASX:AGL): A Fundamentally Attractive Investment

I’ve been keeping an eye on AGL Energy Limited (ASX:AGL) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AGL has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a a great track record of performance. 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 AGL Energy here.

6 star dividend payer with excellent balance sheet

AGL delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, AGL also outperformed its industry, which delivered a growth of 13%. This paints a buoyant picture for the company. AGL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that AGL manages its cash and cost levels well, which is a key determinant of the company’s health. AGL’s has produced operating cash levels of 0.73x total debt over the past year, which implies that AGL’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ASX:AGL Income Statement Export December 9th 18

For those seeking income streams from their portfolio, AGL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 6.4%, making it one of the best dividend companies in the market.

ASX:AGL Historical Dividend Yield December 9th 18

Next Steps:

For AGL Energy, I’ve compiled three fundamental factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for AGL’s future growth? Take a look at our free research report of analyst consensus for AGL’s outlook.
  2. Valuation: What is AGL 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 AGL is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AGL? 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.