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Is IG Group Holdings plc (LON:IGG) Potentially Underrated?

Simply Wall St

I've been keeping an eye on IG Group Holdings plc (LON:IGG) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe IGG has a lot to offer. Basically, it is a notable dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on IG Group Holdings here.

Established dividend payer with adequate balance sheet

IGG's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that IGG has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. IGG's has produced operating cash levels of 2.19x total debt over the past year, which implies that IGG's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:IGG Historical Debt, August 24th 2019

Income investors would also be happy to know that IGG is one of the highest dividend payers in the market, with current dividend yield standing at 7.9%. IGG has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:IGG Historical Dividend Yield, August 24th 2019

Next Steps:

For IG Group Holdings, I've put together three fundamental aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for IGG’s future growth? Take a look at our free research report of analyst consensus for IGG’s outlook.
  2. Historical Performance: What has IGG'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.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IGG? 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 editorial-team@simplywallst.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.