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Should You Be Holding Bodycote plc (LON:BOY)?

Simply Wall St

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I've been keeping an eye on Bodycote plc (LON:BOY) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe BOY has a lot to offer. Basically, it is a notable dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Bodycote here.

Flawless balance sheet average dividend payer

BOY is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. BOY's has produced operating cash levels of 75.35x total debt over the past year, which implies that BOY's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:BOY Historical Debt, May 23rd 2019

Income investors would also be happy to know that BOY is a great dividend company, with a current yield standing at 5.0%. BOY has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:BOY Historical Dividend Yield, May 23rd 2019

Next Steps:

For Bodycote, I've put together three key aspects you should look at:

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