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Should Compagnie de Saint-Gobain S.A. (EPA:SGO) Be Your Next Stock Pick?

Simply Wall St

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I've been keeping an eye on Compagnie de Saint-Gobain S.A. (EPA:SGO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SGO has a lot to offer. Basically, it is a dependable 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 Compagnie de Saint-Gobain here.

Excellent balance sheet average dividend payer

SGO's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that SGO has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. SGO seems to have put its debt to good use, generating operating cash levels of 0.23x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

ENXTPA:SGO Historical Debt, June 26th 2019

SGO pays a decent dividend yield to its shareholders, beating the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.

ENXTPA:SGO Historical Dividend Yield, June 26th 2019

Next Steps:

For Compagnie de Saint-Gobain, I've put together three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for SGO’s future growth? Take a look at our free research report of analyst consensus for SGO’s outlook.
  2. Historical Performance: What has SGO'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.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SGO? 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.