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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Micro-Mechanics (Holdings) Ltd. (SGX:5DD) due to its excellent fundamentals in more than one area. 5DD is a notable dividend payer 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 understanding where the figures come from and want to see the analysis, take a look at the report on Micro-Mechanics (Holdings) here.
Excellent balance sheet average dividend payer
5DD 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. 5DD's has produced operating cash levels of 9.23x total debt over the past year, which implies that 5DD's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, 5DD is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 6.6%, making it one of the best dividend companies in the market.
For Micro-Mechanics (Holdings), there are three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for 5DD’s future growth? Take a look at our free research report of analyst consensus for 5DD’s outlook.
- Historical Performance: What has 5DD'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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 5DD? 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 email@example.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.