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Attractive stocks have exceptional fundamentals. In the case of Super Retail Group Limited (ASX:SUL), there's is a financially-sound , dividend-paying company with a a great track record of performance. 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 Super Retail Group here.
Solid track record with excellent balance sheet and pays a dividend
In the previous year, SUL has ramped up its bottom line by 28%, with its latest earnings level surpassing its average level over the last five years. Not only did SUL outperformed its past performance, its growth also exceeded the Specialty Retail industry expansion, which generated a 6.3% earnings growth. This paints a buoyant picture for the company. SUL's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that SUL has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. SUL's has produced operating cash levels of 0.7x total debt over the past year, which implies that SUL's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
SUL is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Super Retail Group, I've put together three pertinent factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for SUL’s future growth? Take a look at our free research report of analyst consensus for SUL’s outlook.
- Valuation: What is SUL 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 SUL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SUL? 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 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.