Yahoo Finance Admiral Group plc (LON:ADM): A Fundamentally Attractive Investment
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Attractive stocks have exceptional fundamentals. In the case of Admiral Group plc (LON:ADM), there’s is a financially-robust , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Admiral Group here.
Solid track record with adequate balance sheet and pays a dividend
In the previous year, ADM has ramped up its bottom line by 53%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 51%, which paints a buoyant picture for the company. ADM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that ADM has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ADM appears to have made good use of debt, producing operating cash levels of 0.33x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that ADM is one of the highest dividend payers in the market, with current dividend yield standing at 5.6%. ADM has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Admiral Group, I’ve put together three pertinent factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for ADM’s future growth? Take a look at our free research report of analyst consensus for ADM’s outlook.
Valuation: What is ADM 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 ADM is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ADM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
