Attractive stocks have exceptional fundamentals. In the case of HollyFrontier Corporation (NYSE:HFC), there’s is a financially-robust , dividend-paying company with a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on HollyFrontier here.
Outstanding track record with excellent balance sheet and pays a dividend
In the past couple of years, HFC has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 24%, which is an optimistic signal for the future. HFC’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 implies that HFC manages its cash and cost levels well, which is a key determinant of the company’s health. HFC seems to have put its debt to good use, generating operating cash levels of 0.54x 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.
Income investors would also be happy to know that HFC is a great dividend company, with a current yield standing at 2.1%. HFC has also been regularly increasing its dividend payments to shareholders over the past decade.
For HollyFrontier, there are three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for HFC’s future growth? Take a look at our free research report of analyst consensus for HFC’s outlook.
- Valuation: What is HFC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HFC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HFC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.