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These Fundamentals Make Renk Aktiengesellschaft (FRA:ZAR) Truly Worth Looking At

Simply Wall St

Renk Aktiengesellschaft (FRA:ZAR) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ZAR, it is a well-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. For those interested in digging a bit deeper into my commentary, read the full report on Renk here.

Flawless balance sheet average dividend payer

ZAR's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ZAR has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at ZAR's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

DB:ZAR Historical Debt, August 31st 2019

For those seeking income streams from their portfolio, ZAR is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.1%.

DB:ZAR Historical Dividend Yield, August 31st 2019

Next Steps:

For Renk, I've compiled three relevant aspects you should further examine:

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