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Spectris plc (LON:SXS) 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 SXS, it is a financially-sound , dividend-paying company with a a great track record of performance. 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 Spectris here.
Excellent balance sheet established dividend payer
Over the past few years, SXS has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 26%, which is what investors like to see! SXS’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 SXS manages its cash and cost levels well, which is a key determinant of the company’s health. SXS’s has produced operating cash levels of 0.6x total debt over the past year, which implies that SXS’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
SXS 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.
For Spectris, I’ve put together three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for SXS’s future growth? Take a look at our free research report of analyst consensus for SXS’s outlook.
- Valuation: What is SXS 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 SXS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SXS? 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 firstname.lastname@example.org.