As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Wacker Neuson SE (FRA:WAC), it is a financially-robust , dividend-paying company with a a great history of performance. 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 Wacker Neuson here.
Solid track record with excellent balance sheet and pays a dividend
In the previous year, WAC has ramped up its bottom line by 68%, with its latest earnings level surpassing its average level over the last five years. Not only did WAC outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 4.2% earnings growth. This is an notable feat for the company. WAC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that WAC manages its cash and cost levels well, which is an important determinant of the company’s health. WAC’s debt-to-equity ratio stands at 21%, which means its debt level is acceptable. This implies that WAC has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt.
Income investors would also be happy to know that WAC is a great dividend company, with a current yield standing at 3.6%. WAC has also been regularly increasing its dividend payments to shareholders over the past decade.
For Wacker Neuson, I’ve put together three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for WAC’s future growth? Take a look at our free research report of analyst consensus for WAC’s outlook.
- Valuation: What is WAC 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 WAC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WAC? 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 email@example.com.