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Does The Data Make Rotork plc (LON:ROR) An Attractive Investment?

Attractive stocks have exceptional fundamentals. In the case of Rotork plc (LON:ROR), there’s is a financially-healthy company with a an impressive track record of dividend payments and a excellent growth outlook. In the following section, I expand a bit more 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 Rotork here.

Excellent balance sheet with reasonable growth potential and pays a dividend

ROR’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ROR manages its cash and cost levels well, which is an important determinant of the company’s health. ROR’s has produced operating cash levels of 1.42x total debt over the past year, which implies that ROR’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:ROR Future Profit December 16th 18
LSE:ROR Future Profit December 16th 18

For those seeking income streams from their portfolio, ROR is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.3%.

LSE:ROR Historical Dividend Yield December 16th 18
LSE:ROR Historical Dividend Yield December 16th 18

Next Steps:

For Rotork, I’ve put together three relevant aspects you should further examine:

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  1. Historical Performance: What has ROR’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.

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

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