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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Repsol, S.A. (BME:REP) due to its excellent fundamentals in more than one area. REP is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Repsol here.
Adequate balance sheet average dividend payer
REP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that REP has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. REP seems to have put its debt to good use, generating operating cash levels of 0.34x 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.
REP's high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
For Repsol, I've compiled three pertinent aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for REP’s future growth? Take a look at our free research report of analyst consensus for REP’s outlook.
- Historical Performance: What has REP'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 REP? 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 firstname.lastname@example.org. 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.