FRoSTA Aktiengesellschaft (FRA:NLM): A Fundamentally Attractive Investment

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I've been keeping an eye on FRoSTA Aktiengesellschaft (FRA:NLM) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe NLM has a lot to offer. Basically, it 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 digging a bit deeper into my commentary, take a look at the report on FRoSTA here.

Flawless balance sheet established dividend payer

NLM'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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. NLM's has produced operating cash levels of 1.12x total debt over the past year, which implies that NLM's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

DB:NLM Historical Debt, July 20th 2019
DB:NLM Historical Debt, July 20th 2019

NLM is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

DB:NLM Historical Dividend Yield, July 20th 2019
DB:NLM Historical Dividend Yield, July 20th 2019

Next Steps:

For FRoSTA, there are three pertinent factors you should look at:

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

  2. Historical Performance: What has NLM'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 NLM? 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.

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