Attractive stocks have exceptional fundamentals. In the case of First Derivatives plc (LON:FDP), there’s is a financially-sound , dividend-paying company with a a strong history of performance. 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 First Derivatives here.
Excellent balance sheet with proven track record and pays a dividend
FDP delivered a bottom-line expansion of 35% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did FDP outperformed its past performance, its growth also exceeded the IT industry expansion, which generated a 3.7% earnings growth. This is what investors like to see! FDP’s debt-to-equity ratio stands at 27%, which means its debt level is acceptable. This means that FDP’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. FDP appears to have made good use of debt, producing operating cash levels of 0.53x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
FDP 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.
For First Derivatives, I’ve compiled three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for FDP’s future growth? Take a look at our free research report of analyst consensus for FDP’s outlook.
- Valuation: What is FDP 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 FDP is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FDP? 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 firstname.lastname@example.org.