Multi-Chem Limited (SGX:AWZ) Has Attractive 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 Multi-Chem Limited (SGX:AWZ), it is a highly-regarded dividend payer 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 understanding where the figures come from and want to see the analysis, read the full report on Multi-Chem here.

Flawless balance sheet average dividend payer

AWZ'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 AWZ manages its cash and cost levels well, which is a key determinant of the company’s health. AWZ appears to have made good use of debt, producing operating cash levels of 0.76x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SGX:AWZ Historical Debt, June 26th 2019
SGX:AWZ Historical Debt, June 26th 2019

For those seeking income streams from their portfolio, AWZ is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 6.3%, making it one of the best dividend companies in the market.

SGX:AWZ Historical Dividend Yield, June 26th 2019
SGX:AWZ Historical Dividend Yield, June 26th 2019

Next Steps:

For Multi-Chem, there are three pertinent factors you should further examine:

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

  2. Historical Performance: What has AWZ'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 AWZ? 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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