Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on CIMIC Group Limited (ASX:CIM) due to its excellent fundamentals in more than one area. CIM is a highly-regarded dividend-paying company 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 digger a bit deeper into my commentary, take a look at the report on CIMIC Group here.
Excellent balance sheet average dividend payer
With a debt-to-equity ratio of 22%, CIM’s debt level is reasonable. This means that CIM’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. CIM seems to have put its debt to good use, generating operating cash levels of 3.27x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For those seeking income streams from their portfolio, CIM is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.3%.
For CIMIC Group, I’ve compiled three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CIM’s future growth? Take a look at our free research report of analyst consensus for CIM’s outlook.
- Historical Performance: What has CIM’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CIM? 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.