I’ve been keeping an eye on Victrex plc (LON:VCT) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe VCT has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a a great history 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, take a look at the report on Victrex here.
Flawless balance sheet 6 star dividend payer
Over the past year, VCT has grown its earnings by 11%, 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 23%. which is an notable feat for the company. VCT’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. Investors should not worry about VCT’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is rather impressive for a UK£2.0b market cap company. VCT has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For those seeking income streams from their portfolio, VCT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 6.2%, making it one of the best dividend companies in the market.
For Victrex, there are three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for VCT’s future growth? Take a look at our free research report of analyst consensus for VCT’s outlook.
- Valuation: What is VCT 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 VCT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VCT? 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.