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Reasons Why I Like QinetiQ Group plc (LON:QQ.)

Renee Allred

Attractive stocks have exceptional fundamentals. In the case of QinetiQ Group plc (LON:QQ.), there’s is a well-regarded dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on QinetiQ Group here.

Flawless balance sheet average dividend payer

QQ.’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that QQ. has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. QQ. currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. QQ. has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

LSE:QQ. Historical Debt September 3rd 18

Income investors would also be happy to know that QQ. is a great dividend company, with a current yield standing at 2.3%. QQ. has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:QQ. Historical Dividend Yield September 3rd 18

Next Steps:

For QinetiQ Group, there are three relevant aspects you should further research:

  1. 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.
  2. 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.
  3. 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!

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.