A Look At Hexaware Technologies Limited’s (NSE:HEXAWARE) Exceptional Fundamentals
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 Hexaware Technologies Limited (NSE:HEXAWARE), it is a financially-sound , dividend-paying company with a an impressive history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Hexaware Technologies here.
Flawless balance sheet with solid track record and pays a dividend
Over the past year, HEXAWARE has grown its earnings by 16.4%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 24.6%, which is what investors like to see! HEXAWARE’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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Investors should not worry about HEXAWARE’s debt levels because the company has none! 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.
Income investors would also be happy to know that HEXAWARE is one of the highest dividend payers in the market, with current dividend yield standing at 2.3%. HEXAWARE has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Hexaware Technologies, I’ve put together three important factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for HEXAWARE’s future growth? Take a look at our free research report of analyst consensus for HEXAWARE’s outlook.
Valuation: What is HEXAWARE 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 HEXAWARE is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HEXAWARE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
