U.S. Markets closed

Pennon Group Plc (LON:PNN): Commentary On Fundamentals

Simply Wall St

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 Pennon Group Plc (LON:PNN), it is a notable dividend-paying company with a a great track record of delivering benchmark-beating 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 Pennon Group here.

Solid track record established dividend payer

In the previous year, PNN has ramped up its bottom line by 19%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, PNN also outperformed its industry, which delivered a growth of 10%. This paints a buoyant picture for the company.

LSE:PNN Income Statement, March 12th 2019

Income investors would also be happy to know that PNN is a great dividend company, with a current yield standing at 5.0%. PNN has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:PNN Historical Dividend Yield, March 12th 2019

Next Steps:

For Pennon Group, I’ve put together three essential aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for PNN’s future growth? Take a look at our free research report of analyst consensus for PNN’s outlook.
  2. Financial Health: Are PNN’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PNN? 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.