Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Nokian Renkaat Oyj (HEL:NRE1V) due to its excellent fundamentals in more than one area. NRE1V is a financially-sound , dividend-paying company with a an impressive 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, take a look at the report on Nokian Renkaat Oyj here.
Flawless balance sheet 6 star dividend payer
Over the past year, NRE1V has grown its earnings by 33%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, NRE1V also outperformed its industry, which delivered a growth of -0.9%. This is an optimistic signal for the future. NRE1V is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. NRE1V appears to have made good use of debt, producing operating cash levels of 4.06x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that NRE1V is one of the highest dividend payers in the market, with current dividend yield standing at 5.1%. NRE1V has also been regularly increasing its dividend payments to shareholders over the past decade.
For Nokian Renkaat Oyj, I've put together three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for NRE1V’s future growth? Take a look at our free research report of analyst consensus for NRE1V’s outlook.
- Valuation: What is NRE1V 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 NRE1V is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NRE1V? 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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.