Is HOCHTIEF Aktiengesellschaft (FRA:HOT) Potentially Underrated?

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HOCHTIEF Aktiengesellschaft (FRA:HOT) 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 HOT, it is a well-regarded dividend payer 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, read the full report on HOCHTIEF here.

Established dividend payer with adequate balance sheet

HOT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that HOT manages its cash and cost levels well, which is an important determinant of the company’s health. HOT's has produced operating cash levels of 0.51x total debt over the past year, which implies that HOT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

DB:HOT Historical Debt, April 4th 2019
DB:HOT Historical Debt, April 4th 2019

HOT 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:HOT Historical Dividend Yield, April 4th 2019
DB:HOT Historical Dividend Yield, April 4th 2019

Next Steps:

For HOCHTIEF, I've put together three relevant aspects you should look at:

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

  2. Historical Performance: What has HOT'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 HOT? 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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