A Spotlight On Talanx Aktiengesellschaft’s (ETR:TLX) Fundamentals

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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Talanx Aktiengesellschaft (ETR:TLX) due to its excellent fundamentals in more than one area. TLX is a financially-sound company with a a strong history high-grade dividend payments, trading at a great value. Below is a brief commentary 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 Talanx here.

Undervalued with excellent balance sheet and pays a dividend

TLX’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TLX manages its cash and cost levels well, which is a crucial insight into the health of the company. TLX appears to have made good use of debt, producing operating cash levels of 1x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. TLX’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if TLX’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of DE companies with similar levels of earnings, TLX’s share price is trading below the group’s average. This bolsters the proposition that TLX’s price is currently discounted.

XTRA:TLX Intrinsic value, March 5th 2019
XTRA:TLX Intrinsic value, March 5th 2019

TLX’s high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

XTRA:TLX Historical Dividend Yield, March 5th 2019
XTRA:TLX Historical Dividend Yield, March 5th 2019

Next Steps:

For Talanx, there are three fundamental factors you should further research:

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

  2. Historical Performance: What has TLX’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 TLX? 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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