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Why Fundamental Investors Might Love J.K. Cement Limited (NSE:JKCEMENT)

Simply Wall St

I've been keeping an eye on J.K. Cement Limited (NSE:JKCEMENT) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe JKCEMENT has a lot to offer. Basically, it is a financially-healthy company with a great track record and a buoyant growth outlook. 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 J.K. Cement here.

Proven track record with reasonable growth potential and pays a dividend

Over the past few years, JKCEMENT has demonstrated a proven ability to generate robust returns of 7.7% Unsurprisingly, JKCEMENT surpassed the industry return of 5.6%, which gives us more confidence of the company's capacity to drive earnings going forward.

NSEI:JKCEMENT Past and Future Earnings, September 18th 2019

JKCEMENT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. JKCEMENT seems to have put its debt to good use, generating operating cash levels of 0.23x 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.

NSEI:JKCEMENT Historical Debt, September 18th 2019

Next Steps:

For J.K. Cement, I've put together three key aspects you should further examine:

  1. Valuation: What is JKCEMENT 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 JKCEMENT is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does JKCEMENT return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from JKCEMENT as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JKCEMENT? 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.