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 Bechtle AG (ETR:BC8), it is a financially-sound , dividend-paying company with an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, read the full report on Bechtle here.
Adequate balance sheet with proven track record and pays a dividend
In the previous year, BC8 has ramped up its bottom line by 23%, with its latest earnings level surpassing its average level over the last five years. Not only did BC8 outperformed its past performance, its growth also exceeded the IT industry expansion, which generated a 20% earnings growth. This is what investors like to see! BC8's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that BC8 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. BC8's has produced operating cash levels of 0.27x total debt over the past year, which implies that BC8's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
BC8 is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Bechtle, I've compiled three essential aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for BC8’s future growth? Take a look at our free research report of analyst consensus for BC8’s outlook.
- Valuation: What is BC8 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 BC8 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BC8? 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 firstname.lastname@example.org. 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.