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I've been keeping an eye on Bouygues SA (EPA:EN) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EN has a lot to offer. Basically, it is a financially-robust company with a strong track record high-grade dividend payments, trading at a discount. 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, read the full report on Bouygues here.
6 star dividend payer and good value
EN appears to have made good use of debt, producing operating cash levels of 0.3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. Also, EN’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps EN expand. EN'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 EN's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the construction industry, EN is also trading below its peers, relative to earnings generated. This supports the theory that EN is potentially underpriced.
Income investors would also be happy to know that EN is one of the highest dividend payers in the market, with current dividend yield standing at 5.4%. EN has also been regularly increasing its dividend payments to shareholders over the past decade.
For Bouygues, I've put together three important aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for EN’s future growth? Take a look at our free research report of analyst consensus for EN’s outlook.
- Historical Performance: What has EN'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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EN? 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 email@example.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.