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How NCC Group plc (LON:NCC) Could Add Value To Your Portfolio

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 NCC Group plc (LON:NCC), it is a financially-sound company with a an impressive track record of dividend payments and a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on NCC Group here.

Flawless balance sheet with reasonable growth potential and pays a dividend

NCC’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. NCC seems to have put its debt to good use, generating operating cash levels of 0.67x 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.

LSE:NCC Future Profit October 3rd 18
LSE:NCC Future Profit October 3rd 18

NCC dishes out decent dividend payments over time, higher than the low-risk savings rate, which is what investors expect when they take on the risk of investing in the stock market.

LSE:NCC Historical Dividend Yield October 3rd 18
LSE:NCC Historical Dividend Yield October 3rd 18

Next Steps:

For NCC Group, there are three fundamental factors you should further examine:

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  1. 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.

  2. 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.

  3. 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!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.