Should AUB Group Limited (ASX:AUB) Be Your Next Stock Pick?
I’ve been keeping an eye on AUB Group Limited (ASX:AUB) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AUB has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on AUB Group here.
Excellent balance sheet established dividend payer
AUB delivered a bottom-line expansion of 44.80% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did AUB outperformed its past performance, its growth also surpassed the Insurance industry expansion, which generated a 3.89% earnings growth. This is an optimistic signal for the future. AUB’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that AUB has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. AUB’s has produced operating cash levels of 0.59x total debt over the past year, which implies that AUB’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 AUB is a great dividend company, with a current yield standing at 3.02%. AUB has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For AUB Group, I’ve compiled three key factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for AUB’s future growth? Take a look at our free research report of analyst consensus for AUB’s outlook.
Valuation: What is AUB 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 AUB is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AUB? 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 pass 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.
