Yahoo Finance Looking At PageGroup plc (LON:PAGE) From All Angles
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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on PageGroup plc (LON:PAGE) due to its excellent fundamentals in more than one area. PAGE is a financially-sound company with an impressive history and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on PageGroup here.
Flawless balance sheet 6 star dividend payer
PAGE is expected to churn out cash in the short term, with its operating cash flow predicted to expand by 64%. This underlies the notable 34% return on equity over the next few years leading up to 2022. PAGE has a strong track record of performance. In the previous year, PAGE delivered an impressive double-digit return of 30% Unsurprisingly, PAGE surpassed the Professional Services industry return of 22%, which gives us more confidence of the company’s capacity to drive earnings going forward.
PAGE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that PAGE has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Investors should not worry about PAGE’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For PageGroup, there are three relevant factors you should further examine:
Valuation: What is PAGE 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 PAGE is currently mispriced by the market.
Dividend Income vs Capital Gains: Does PAGE return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from PAGE as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PAGE? 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.
