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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on AVX Corporation (NYSE:AVX) due to its excellent fundamentals in more than one area. AVX is a financially-sound , dividend-paying company with a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on AVX here.
Flawless balance sheet established dividend payer
In the past couple of years, AVX has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did AVX outperformed its past performance, its growth also surpassed the Electronic industry expansion, which generated a 55% earnings growth. This is an optimistic signal for the future. AVX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that AVX has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Investors should not worry about AVX’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$2.8b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For those seeking income streams from their portfolio, AVX is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.8%.
For AVX, there are three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for AVX’s future growth? Take a look at our free research report of analyst consensus for AVX’s outlook.
- Valuation: What is AVX 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 AVX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AVX? 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.