Erie Indemnity Company (NASDAQ:ERIE) 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 ERIE, it is a financially-healthy , dividend-paying company with a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Erie Indemnity here.
Outstanding track record with excellent balance sheet and pays a dividend
In the previous year, ERIE has ramped up its bottom line by 30%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 29% return to shareholders, which is what investors like to see! ERIE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that ERIE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. ERIE seems to have put its debt to good use, generating operating cash levels of 3.41x 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.
For those seeking income streams from their portfolio, ERIE is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.9%.
For Erie Indemnity, I've compiled three fundamental factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for ERIE’s future growth? Take a look at our free research report of analyst consensus for ERIE’s outlook.
- Valuation: What is ERIE 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 ERIE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ERIE? 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.