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Does The Data Make Hays plc (LON:HAS) An Attractive Investment?

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 Hays plc (LON:HAS), it is a financially-healthy , dividend-paying company with a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Hays here.

Flawless balance sheet established dividend payer

HAS delivered a satisfying double-digit returns of 27% in the most recent year Not surprisingly, HAS outperformed its industry which returned 19%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. HAS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that HAS has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. HAS appears to have made good use of debt, producing operating cash levels of 1.98x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:HAS Income Statement, April 10th 2019
LSE:HAS Income Statement, April 10th 2019

Income investors would also be happy to know that HAS is one of the highest dividend payers in the market, with current dividend yield standing at 5.8%. HAS has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:HAS Historical Dividend Yield, April 10th 2019
LSE:HAS Historical Dividend Yield, April 10th 2019

Next Steps:

For Hays, there are three important factors you should look at:

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  1. Future Outlook: What are well-informed industry analysts predicting for HAS’s future growth? Take a look at our free research report of analyst consensus for HAS’s outlook.

  2. Valuation: What is HAS 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 HAS is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HAS? 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.