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I've been keeping an eye on Mondi plc (LON:MNDI) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MNDI has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a a great history of performance. 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 Mondi here.
Solid track record with adequate balance sheet and pays a dividend
Over the past year, MNDI has grown its earnings by 23%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 23% return to shareholders, which is an notable feat for the company. MNDI's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that MNDI manages its cash and cost levels well, which is a crucial insight into the health of the company. MNDI's has produced operating cash levels of 0.62x total debt over the past year, which implies that MNDI's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, MNDI is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.7%.
For Mondi, I've compiled three essential factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MNDI’s future growth? Take a look at our free research report of analyst consensus for MNDI’s outlook.
- Valuation: What is MNDI 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 MNDI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MNDI? 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.