Yahoo Finance These Factors Make PayPoint plc (LON:PAY) A Great Investment
PayPoint plc (LON:PAY) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of PAY, it is a financially-sound , dividend-paying company with a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on PayPoint here.
Flawless balance sheet 6 star dividend payer
PAY delivered a satisfying double-digit returns of 70.05% in the most recent year Not surprisingly, PAY outperformed its industry which returned 11.49%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. PAY is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Investors should not worry about PAY’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
PAY’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.79%.
Next Steps:
For PayPoint, there are three relevant aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for PAY’s future growth? Take a look at our free research report of analyst consensus for PAY’s outlook.
Valuation: What is PAY 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 PAY is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PAY? 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 pass 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.
