Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on CMC Markets Plc (LON:CMCX) due to its excellent fundamentals in more than one area. CMCX is a financially-sound , dividend-paying company with a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on CMC Markets here.
Excellent balance sheet with solid track record and pays a dividend
In the previous year, CMCX has ramped up its bottom line by 27%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 23%, which paints a buoyant picture for the company. CMCX 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 an important determinant of the company’s health. CMCX appears to have made good use of debt, producing operating cash levels of 6.97x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
CMCX is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.
For CMC Markets, I’ve put together three key aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CMCX’s future growth? Take a look at our free research report of analyst consensus for CMCX’s outlook.
- Valuation: What is CMCX 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 CMCX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CMCX? 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 firstname.lastname@example.org.