QinetiQ Group plc (LON:QQ.) 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 QQ., it is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on QinetiQ Group here.
Flawless balance sheet average dividend payer
QQ.'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 implies that QQ. manages its cash and cost levels well, which is an important determinant of the company’s health. Investors should not worry about QQ.’s debt levels because the company has none! This means it is running its business only on equity capital 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.
Income investors would also be happy to know that QQ. is a great dividend company, with a current yield standing at 2.4%. QQ. has also been regularly increasing its dividend payments to shareholders over the past decade.
For QinetiQ Group, I've put together three relevant aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for QQ.’s future growth? Take a look at our free research report of analyst consensus for QQ.’s outlook.
- Historical Performance: What has QQ.'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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of QQ.? 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.