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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Compagnie Générale des Établissements Michelin (EPA:ML), it is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Compagnie Générale des Établissements Michelin here.
Established dividend payer with adequate balance sheet
ML'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 an important determinant of the company’s health. ML seems to have put its debt to good use, generating operating cash levels of 0.46x 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.
Income investors would also be happy to know that ML is a great dividend company, with a current yield standing at 3.4%. ML has also been regularly increasing its dividend payments to shareholders over the past decade.
For Compagnie Générale des Établissements Michelin, there are three essential aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for ML’s future growth? Take a look at our free research report of analyst consensus for ML’s outlook.
- Historical Performance: What has ML'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 ML? 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.