I've been keeping an eye on Rottneros AB (publ) (STO:RROS) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe RROS has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with a strong history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Rottneros here.
Excellent balance sheet with proven track record and pays a dividend
In the previous year, RROS has ramped up its bottom line by 82%, with its latest earnings level surpassing its average level over the last five years. Not only did RROS outperformed its past performance, its growth also exceeded the Forestry industry expansion, which generated a 3.9% earnings growth. This paints a buoyant picture for the company. RROS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that RROS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. RROS's has produced operating cash levels of 0.96x total debt over the past year, which implies that RROS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
RROS's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.
For Rottneros, there are three pertinent aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for RROS’s future growth? Take a look at our free research report of analyst consensus for RROS’s outlook.
- Valuation: What is RROS 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 RROS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RROS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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