Attractive stocks have exceptional fundamentals. In the case of VST Industries Limited (NSE:VSTIND), there’s is a financially-healthy , dividend-paying company with a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on VST Industries here.
Outstanding track record with flawless balance sheet and pays a dividend
Over the past year, VSTIND has grown its earnings by 24%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 40%, which paints a buoyant picture for the company. VSTIND’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. Looking at VSTIND’s capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Income investors would also be happy to know that VSTIND is one of the highest dividend payers in the market, with current dividend yield standing at 2.3%. VSTIND has also been regularly increasing its dividend payments to shareholders over the past decade.
For VST Industries, I’ve compiled three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for VSTIND’s future growth? Take a look at our free research report of analyst consensus for VSTIND’s outlook.
- Valuation: What is VSTIND 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 VSTIND is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VSTIND? 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.