Yahoo Finance Should Ashmore Group PLC (LON:ASHM) Be Your Next Stock Pick?
Ashmore Group PLC (LON:ASHM) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ASHM, it is a financially-healthy company with a a great track record of dividend payments and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Ashmore Group here.
Flawless balance sheet established dividend payer
Investors seeking high cash growth potential should consider ASHM, with forecasted operating cash flow growth of 87.07%. This is expected to flow down into an impressive return on equity of 22.18% over the next couple of years. ASHM’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 ASHM has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at ASHM’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 rather impressive for a UK£2.55b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For those seeking income streams from their portfolio, ASHM is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.43%, making it one of the best dividend companies in the market.
Next Steps:
For Ashmore Group, there are three relevant aspects you should further examine:
Historical Performance: What has ASHM’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.
Valuation: What is ASHM 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 ASHM is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ASHM? 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 pass 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.
