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Harvey Norman Holdings Limited (ASX:HVN): Commentary On Fundamentals

Simply Wall St

Harvey Norman Holdings Limited (ASX:HVN) 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 HVN, it is a notable 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 broad commentary, take a look at the report on Harvey Norman Holdings here.

Flawless balance sheet established dividend payer

HVN's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. HVN seems to have put its debt to good use, generating operating cash levels of 0.4x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

ASX:HVN Historical Debt, July 22nd 2019

HVN’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 6.9%.

ASX:HVN Historical Dividend Yield, July 22nd 2019

Next Steps:

For Harvey Norman Holdings, there are three key aspects you should look at:

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