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Should J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) Be Your Next Stock Pick?

Simply Wall St

I've been keeping an eye on J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe JBCHEPHARM has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on J. B. Chemicals & Pharmaceuticals here.

Flawless balance sheet with solid track record and pays a dividend

In the previous year, JBCHEPHARM has ramped up its bottom line by 38%, with its latest earnings level surpassing its average level over the last five years. Not only did JBCHEPHARM outperformed its past performance, its growth also exceeded the Pharmaceuticals industry expansion, which generated a 15% earnings growth. This is what investors like to see! JBCHEPHARM'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 indicates that JBCHEPHARM has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. JBCHEPHARM seems to have put its debt to good use, generating operating cash levels of 7.48x 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.

NSEI:JBCHEPHARM Income Statement, August 28th 2019

JBCHEPHARM 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.

NSEI:JBCHEPHARM Historical Dividend Yield, August 28th 2019

Next Steps:

For J. B. Chemicals & Pharmaceuticals, there are three relevant aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for JBCHEPHARM’s future growth? Take a look at our free research report of analyst consensus for JBCHEPHARM’s outlook.
  2. Valuation: What is JBCHEPHARM 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 JBCHEPHARM is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JBCHEPHARM? 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.