Yahoo Finance These Fundamentals Make Sandvik AB (STO:SAND) Truly Worth Looking At
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Sandvik AB (STO:SAND) due to its excellent fundamentals in more than one area. SAND is a financially-robust , dividend-paying company with a strong history of performance. 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 Sandvik here.
Excellent balance sheet with proven track record and pays a dividend
Over the past few years, SAND has demonstrated a proven ability to generate robust returns of 22%. Not surprisingly, SAND outperformed its industry which returned 22%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. SAND's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that SAND manages its cash and cost levels well, which is a crucial insight into the health of the company. SAND appears to have made good use of debt, producing operating cash levels of 0.6x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that SAND is a great dividend company, with a current yield standing at 3.1%. SAND has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Sandvik, there are three fundamental aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for SAND’s future growth? Take a look at our free research report of analyst consensus for SAND’s outlook.
Valuation: What is SAND 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 SAND is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SAND? 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.
