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Should Brembo S.p.A. (BIT:BRE) Be Your Next Stock Pick?

Dale Lombardi

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Brembo S.p.A. (BIT:BRE) 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 BRE, it is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Brembo here.

Excellent balance sheet established dividend payer

BRE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that BRE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. BRE appears to have made good use of debt, producing operating cash levels of 0.74x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

BIT:BRE Historical Debt February 7th 19

For those seeking income streams from their portfolio, BRE is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.2%.

BIT:BRE Historical Dividend Yield February 7th 19

Next Steps:

For Brembo, there are three pertinent aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for BRE’s future growth? Take a look at our free research report of analyst consensus for BRE’s outlook.
  2. Historical Performance: What has BRE’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.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BRE? 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.