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An Examination Of Smiths Group plc (LON:SMIN)

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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Smiths Group plc (LON:SMIN), it 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 high-level commentary, read the full report on Smiths Group here.

Excellent balance sheet established dividend payer

SMIN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that SMIN manages its cash and cost levels well, which is a crucial insight into the health of the company. SMIN appears to have made good use of debt, producing operating cash levels of 0.25x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:SMIN Historical Debt November 22nd 18
LSE:SMIN Historical Debt November 22nd 18

Income investors would also be happy to know that SMIN is a great dividend company, with a current yield standing at 3.2%. SMIN has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:SMIN Historical Dividend Yield November 22nd 18
LSE:SMIN Historical Dividend Yield November 22nd 18

Next Steps:

For Smiths Group, I’ve compiled three essential aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for SMIN’s future growth? Take a look at our free research report of analyst consensus for SMIN’s outlook.

  2. Historical Performance: What has SMIN’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.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SMIN? 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.