A Look At Eutelsat Communications S.A.'s (EPA:ETL) Exceptional Fundamentals

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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 Eutelsat Communications S.A. (EPA:ETL), it is a dependable dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Eutelsat Communications here.

Established dividend payer with adequate balance sheet

ETL'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 implies that ETL manages its cash and cost levels well, which is a key determinant of the company’s health. ETL seems to have put its debt to good use, generating operating cash levels of 0.21x 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.

ENXTPA:ETL Historical Debt, June 11th 2019
ENXTPA:ETL Historical Debt, June 11th 2019

Income investors would also be happy to know that ETL is one of the highest dividend payers in the market, with current dividend yield standing at 7.8%. ETL has also been regularly increasing its dividend payments to shareholders over the past decade.

ENXTPA:ETL Historical Dividend Yield, June 11th 2019
ENXTPA:ETL Historical Dividend Yield, June 11th 2019

Next Steps:

For Eutelsat Communications, there are three essential factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for ETL’s future growth? Take a look at our free research report of analyst consensus for ETL’s outlook.

  2. Historical Performance: What has ETL'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 ETL? 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.

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