How Alfa Laval AB (publ) (STO:ALFA) Could Add Value To Your Portfolio
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Alfa Laval AB (publ) (STO:ALFA) due to its excellent fundamentals in more than one area. ALFA is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Alfa Laval here.
Established dividend payer with adequate balance sheet
ALFA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. ALFA's has produced operating cash levels of 0.43x total debt over the past year, which implies that ALFA's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, ALFA is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.5%.
Next Steps:
For Alfa Laval, I've compiled three fundamental aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for ALFA’s future growth? Take a look at our free research report of analyst consensus for ALFA’s outlook.
Historical Performance: What has ALFA'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.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALFA? 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.
