Yahoo Finance A Holistic Look At NCC Group plc (LON:NCC)
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NCC Group plc (LON:NCC) 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 NCC, it is a financially-robust company with a an impressive history of dividend payments and a excellent growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on NCC Group here.
Flawless balance sheet established dividend payer
NCC is an attractive stock for growth-seeking investors, with an expected earnings growth of 25% in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by 55% next year. This indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. NCC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that NCC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. NCC appears to have made good use of debt, producing operating cash levels of 0.41x 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 NCC is a great dividend company, with a current yield standing at 3.0%. NCC has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For NCC Group, there are three key aspects you should look at:
Historical Performance: What has NCC'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.
Valuation: What is NCC 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 NCC is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NCC? 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.
