U.S. Markets closed

These Factors Make Compagnie de Saint-Gobain S.A. (EPA:SGO) An Interesting Investment

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Compagnie de Saint-Gobain S.A. (EPA:SGO) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SGO, it is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Compagnie de Saint-Gobain here.

Excellent balance sheet average dividend payer

SGO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. SGO's has produced operating cash levels of 0.23x total debt over the past year, which implies that SGO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTPA:SGO Historical Debt, June 26th 2019

SGO pays a decent dividend yield to its shareholders, exceeding the low-risk savings rate, which is able to compensate investors for taking on the risk of holding a risky stock over a riskless asset. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.

ENXTPA:SGO Historical Dividend Yield, June 26th 2019

Next Steps:

For Compagnie de Saint-Gobain, there are three fundamental factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for SGO’s future growth? Take a look at our free research report of analyst consensus for SGO’s outlook.
  2. Historical Performance: What has SGO'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 SGO? 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 editorial-team@simplywallst.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.