Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on H & M Hennes & Mauritz AB (publ) (STO:HM B) due to its excellent fundamentals in more than one area. HM B is a highly-regarded dividend-paying company 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 understanding where the figures come from and want to see the analysis, read the full report on H & M Hennes & Mauritz here.
Established dividend payer with adequate balance sheet
HM B'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 HM B manages its cash and cost levels well, which is an important determinant of the company’s health. HM B appears to have made good use of debt, producing operating cash levels of 0.87x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, HM B is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 5.2%, making it one of the best dividend companies in the market.
For H & M Hennes & Mauritz, I've compiled three essential factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for HM B’s future growth? Take a look at our free research report of analyst consensus for HM B’s outlook.
- Historical Performance: What has HM B'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 HM B? 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.