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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Erie Indemnity Company (NASDAQ:ERIE), it is a financially-sound , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Erie Indemnity here.
Excellent balance sheet with solid track record and pays a dividend
Over the past year, ERIE has grown its earnings by 22%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 28%, which is an optimistic signal for the future. ERIE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ERIE has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ERIE seems to have put its debt to good use, generating operating cash levels of 2.52x 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.
For those seeking income streams from their portfolio, ERIE is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.3%.
For Erie Indemnity, I’ve compiled three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ERIE’s future growth? Take a look at our free research report of analyst consensus for ERIE’s outlook.
- Valuation: What is ERIE 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 ERIE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ERIE? 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.