Why I Like Trigano S.A. (EPA:TRI)

In this article:

Trigano S.A. (EPA:TRI) 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 TRI, it is a financially-sound , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Trigano here.

Outstanding track record with excellent balance sheet and pays a dividend

In the previous year, TRI has ramped up its bottom line by 47%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 24%. which paints a buoyant picture for the company. TRI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that TRI has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. TRI’s has produced operating cash levels of 0.61x total debt over the past year, which implies that TRI’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTPA:TRI Income Statement, March 1st 2019
ENXTPA:TRI Income Statement, March 1st 2019

Income investors would also be happy to know that TRI is a great dividend company, with a current yield standing at 2.3%. TRI has also been regularly increasing its dividend payments to shareholders over the past decade.

ENXTPA:TRI Historical Dividend Yield, March 1st 2019
ENXTPA:TRI Historical Dividend Yield, March 1st 2019

Next Steps:

For Trigano, I’ve compiled three important aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for TRI’s future growth? Take a look at our free research report of analyst consensus for TRI’s outlook.

  2. Valuation: What is TRI 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 TRI is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TRI? 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.

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