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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Wm Morrison Supermarkets PLC (LON:MRW), it is a notable dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Wm Morrison Supermarkets here.
Adequate balance sheet average dividend payer
With a debt-to-equity ratio of 28%, MRW’s debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. MRW appears to have made good use of debt, producing operating cash levels of 0.55x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
MRW is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
For Wm Morrison Supermarkets, there are three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MRW’s future growth? Take a look at our free research report of analyst consensus for MRW’s outlook.
- Historical Performance: What has MRW'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 MRW? 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.