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Looking At Crest Nicholson Holdings plc (LON:CRST) From All Angles

Attractive stocks have exceptional fundamentals. In the case of Crest Nicholson Holdings plc (LON:CRST), there's is a financially-healthy company with a great track record high-quality dividend payments, trading at a great value. 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, take a look at the report on Crest Nicholson Holdings here.

Flawless balance sheet, undervalued and pays a dividend

CRST'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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. CRST seems to have put its debt to good use, generating operating cash levels of 0.37x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. CRST is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the consumer durables industry, CRST is also trading below its peers, relative to earnings generated. This bolsters the proposition that CRST's price is currently discounted.

LSE:CRST Intrinsic value, August 12th 2019
LSE:CRST Intrinsic value, August 12th 2019

CRST's high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

LSE:CRST Historical Dividend Yield, August 12th 2019
LSE:CRST Historical Dividend Yield, August 12th 2019

Next Steps:

For Crest Nicholson Holdings, there are three essential factors you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for CRST’s future growth? Take a look at our free research report of analyst consensus for CRST’s outlook.

  2. Historical Performance: What has CRST'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.

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