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Croda International Plc (LON:CRDA) Has Attractive Fundamentals

Arjun Bhatia

I’ve been keeping an eye on Croda International Plc (LON:CRDA) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CRDA has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a an impressive history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Croda International here.

Solid track record with excellent balance sheet and pays a dividend

CRDA delivered a bottom-line expansion of 14% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 27%, which paints a buoyant picture for the company. CRDA’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 implies that CRDA manages its cash and cost levels well, which is a crucial insight into the health of the company. CRDA’s has produced operating cash levels of 0.58x total debt over the past year, which implies that CRDA’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:CRDA Income Statement Export December 24th 18

For those seeking income streams from their portfolio, CRDA is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.8%.

LSE:CRDA Historical Dividend Yield December 24th 18

Next Steps:

For Croda International, there are three pertinent aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for CRDA’s future growth? Take a look at our free research report of analyst consensus for CRDA’s outlook.
  2. Valuation: What is CRDA 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 CRDA is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CRDA? 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 editorial-team@simplywallst.com.