There are many factors that make up a great investment. Generally, important aspects to consider can be grouped into the following five factors: past performance, financial health, future growth, value for money and cash flow to investors. In this article, I’ve put together a list of stocks which provide investors with two or more favourable aspects, making them popular investments for all kinds of investors.
DekelOil Public Limited (AIM:DKL)
DekelOil Public Limited, through its subsidiaries, develops and cultivates palm oil plantations in the Republic of Cote d’Ivoire. Formed in 2007, and run by CEO Youval Rasin, the company employs 300 people and with the company’s market capitalisation at GBP £21.38M, we can put it in the small-cap stocks category.
Investors seeking high cash growth potential should consider DKL, with forecasted operating cash flow growth of triple-digits in the upcoming year, expected to trickle down to investors in the form of a 30.53% return on equity in the near term. DKL’s earnings growth in the past year reaching triple-digits, exceeding its industry expansion of 5.20%, is a rewarding treat for company shareholders. Furthermore, DKL is currently trading below its true value in terms of its discounted cash flows, and also on its price-to-equity metric, meaning those that are interested in the stock can buy it for cheap. Dig deeper into DekelOil here.
Electrocomponents plc (LSE:ECM)
Electrocomponents plc, together with its subsidiaries, distributes various electronics and industrial products in Northern Europe, Southern Europe, Central Europe, the Asia Pacific, North America, and internationally. Established in 1937, and now run by Lindsley Ruth, the company employs 5,771 people and with the company’s market cap sitting at GBP £3.16B, it falls under the mid-cap stocks category.
ECM’s ability to grow its earnings in the past at 62.43%, leading to an equally impressive triple-digit return on equity, paints an buoyant picture for the company. ECM’s upcoming commitments are met by its short-term assets, and its total debt is well-covered by its cash flows, portraying its strong financial capacity. Furthermore, ECM has been able to reinvest its profits, as well as pay some out as dividends, which has also been steadily increasing over time. Dig deeper into Electrocomponents here.
Costain Group PLC (LSE:COST)
Costain Group PLC provides engineering solutions for various energy, water, and transportation infrastructures in the United Kingdom, Spain, and internationally. Founded in 1865, and currently lead by Andrew Wyllie, the company now has 4,008 employees and with the company’s market cap sitting at GBP £500.11M, it falls under the small-cap group.
COST’s previous bottom-line expansion of 23.49% in the prior year, leading to an equally impressive triple-digit return on equity, is an impressive feat for the company. COST’s upcoming commitments are met by its short-term assets, and its debt is adequately covered by its operating cash, portraying its strong financial capacity. Last but not least, COST’s ample net income is able to cover all of its dividend payments, which has been impressively growing over the past decade. More detail on Costain Group here.
For more fundamentally-robust companies with industry-beating characteristics to enhance your portfolio, explore this interactive list of big green snowflake stocks.
To help readers see pass 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.