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 Safran SA (EPA:SAF), it is a dependable dividend payer 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 digging a bit deeper into my commentary, take a look at the report on Safran here.
Adequate balance sheet average dividend payer
SAF's has produced operating cash levels of 0.54x total debt over the past year, which implies that SAF's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. Also, SAF’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps SAF expand.
For those seeking income streams from their portfolio, SAF is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.3%.
For Safran, I've put together three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for SAF’s future growth? Take a look at our free research report of analyst consensus for SAF’s outlook.
- Historical Performance: What has SAF'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 SAF? 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 email@example.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.