A Look At Romande Energie Holding SA's (VTX:HREN) Exceptional Fundamentals

As an investor, I look for investments which do 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 Romande Energie Holding SA (VTX:HREN), it is a financially-sound company with an impressive track record of dividend payments and a buoyant future outlook. 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 Romande Energie Holding here.

Excellent balance sheet with reasonable growth potential and pays a dividend

HREN'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. HREN's has produced operating cash levels of 0.89x total debt over the past year, which implies that HREN's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

SWX:HREN Past and Future Earnings, September 7th 2019
SWX:HREN Past and Future Earnings, September 7th 2019

HREN 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.

SWX:HREN Historical Dividend Yield, September 7th 2019
SWX:HREN Historical Dividend Yield, September 7th 2019

Next Steps:

For Romande Energie Holding, I've compiled three fundamental aspects you should further research:

  1. Historical Performance: What has HREN'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.

  2. Valuation: What is HREN 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 HREN is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HREN? 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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