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Treatt plc (LON:TET): The Best Of Both Worlds

Simply Wall St

Treatt plc (LON:TET) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TET, it is a highly-regarded dividend payer 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 understanding where the figures come from and want to see the analysis, take a look at the report on Treatt here.

Flawless balance sheet average dividend payer

TET's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. TET's has produced operating cash levels of 0.25x total debt over the past year, which implies that TET's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:TET Historical Debt, September 7th 2019

Income investors would also be happy to know that TET is a great dividend company, with a current yield standing at 1.2%. TET has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:TET Historical Dividend Yield, September 7th 2019

Next Steps:

For Treatt, I've compiled three fundamental factors you should further research:

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