Yahoo Finance Aviva plc (LON:AV.): Commentary On Fundamentals
Attractive stocks have exceptional fundamentals. In the case of Aviva plc (LSE:AV.), there’s is a financially-robust company with a an impressive history superior dividend payments, trading at a great value. 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 Aviva here.
Good value with adequate balance sheet and pays a dividend
AV.’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 AV. has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. AV. appears to have made good use of debt, producing operating cash levels of 0.75x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. AV.’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of AV.’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the insurance industry, AV. is also trading below its peers, relative to earnings generated. This further reaffirms that AV. is potentially undervalued.
AV.’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.
Next Steps:
For Aviva, I’ve compiled three key factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for AV.’s future growth? Take a look at our free research report of analyst consensus for AV.’s outlook.
Historical Performance: What has AV.’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 AV.? 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.
