Victrex plc (LON:VCT) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of VCT, it is a notable dividend payer 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. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Victrex here.
Flawless balance sheet 6 star dividend payer
VCT's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that VCT manages its cash and cost levels well, which is an important determinant of the company’s health. Investors should not worry about VCT’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is rather impressive for a UK£1.7b market cap company. VCT has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For those seeking income streams from their portfolio, VCT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 7.0%, making it one of the best dividend companies in the market.
For Victrex, I've put together three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for VCT’s future growth? Take a look at our free research report of analyst consensus for VCT’s outlook.
- Historical Performance: What has VCT'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 VCT? 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 email@example.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.