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Attractive stocks have exceptional fundamentals. In the case of UPM-Kymmene Oyj (HEL:UPM), there's is a financially-healthy , dividend-paying company with a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on UPM-Kymmene Oyj here.
Flawless balance sheet with solid track record and pays a dividend
Over the past year, UPM has grown its earnings by 43%, with its most recent figure exceeding its annual average over the past five years. Not only did UPM outperformed its past performance, its growth also exceeded the Forestry industry expansion, which generated a 23% earnings growth. This is an notable feat for the company. UPM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that UPM manages its cash and cost levels well, which is a key determinant of the company’s health. UPM seems to have put its debt to good use, generating operating cash levels of 1.18x 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.
UPM is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.
For UPM-Kymmene Oyj, there are three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for UPM’s future growth? Take a look at our free research report of analyst consensus for UPM’s outlook.
- Valuation: What is UPM 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 UPM is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UPM? 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.