Yahoo Finance Brief Commentary On Rathbone Brothers Plc's (LON:RAT) Fundamentals
Attractive stocks have exceptional fundamentals. In the case of Rathbone Brothers Plc (LON:RAT), there's is a financially-sound company with a great history of dividend payments and a excellent growth outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Rathbone Brothers here.
Excellent balance sheet with reasonable growth potential and pays a dividend
RAT'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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. RAT seems to have put its debt to good use, generating operating cash levels of 15.86x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
RAT dishes out decent dividend payments over time, beating the low-risk savings rate, which is able to compensate investors for taking on the risk of holding a risky stock over a riskless asset. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.
Next Steps:
For Rathbone Brothers, there are three essential aspects you should further research:
Historical Performance: What has RAT'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 RAT 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 RAT is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RAT? 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 editorial-team@simplywallst.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.
