As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Amino Technologies plc (LON:AMO), it is a financially-healthy company with a great history high-quality dividend payments, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Amino Technologies here.
Flawless balance sheet, good value and pays a dividend
AMO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that AMO has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Looking at AMO's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future. AMO'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. Also, relative to the rest of its peers with similar levels of earnings, AMO's share price is trading below the group's average. This supports the theory that AMO is potentially underpriced.
AMO's high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
For Amino Technologies, there are three essential aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for AMO’s future growth? Take a look at our free research report of analyst consensus for AMO’s outlook.
- Historical Performance: What has AMO'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 AMO? 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.