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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on AirBoss of America Corp. (TSE:BOS) due to its excellent fundamentals in more than one area. BOS is a financially-robust company with a an impressive track record superior dividend payments, trading at a great value. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on AirBoss of America here.
Excellent balance sheet, good value and pays a dividend
BOS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that BOS has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. BOS seems to have put its debt to good use, generating operating cash levels of 0.32x 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. BOS's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the chemicals industry, BOS is also trading below its peers of similar sizes in terms of their assets. This supports the theory that BOS is potentially underpriced.
Income investors would also be happy to know that BOS is a great dividend company, with a current yield standing at 3.4%. BOS has also been regularly increasing its dividend payments to shareholders over the past decade.
For AirBoss of America, there are three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for BOS’s future growth? Take a look at our free research report of analyst consensus for BOS’s outlook.
- Historical Performance: What has BOS'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 BOS? 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 firstname.lastname@example.org. 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.