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I've been keeping an eye on Taitron Components Incorporated (NASDAQ:TAIT) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe TAIT has a lot to offer. Basically, it is a financially-robust company with a an impressive history superior dividend payments, trading at a great value. 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 Taitron Components here.
Flawless balance sheet, undervalued and pays a dividend
TAIT'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 indicates that TAIT has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. TAIT currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future. TAIT's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, TAIT's share price is trading below the group's average. This supports the theory that TAIT is potentially underpriced.
Income investors would also be happy to know that TAIT is one of the highest dividend payers in the market, with current dividend yield standing at 5.3%. TAIT has also been regularly increasing its dividend payments to shareholders over the past decade.
For Taitron Components, there are three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TAIT’s future growth? Take a look at our free research report of analyst consensus for TAIT’s outlook.
- Historical Performance: What has TAIT'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 TAIT? 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.