Yahoo Finance Schindler Holding AG (VTX:SCHN) Has Attractive Fundamentals, Here’s Why
Schindler Holding AG (VTX:SCHN) 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 SCHN, it is a financially-healthy company with an impressive history and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Schindler Holding here.
Flawless balance sheet with solid track record and pays a dividend
SCHN is expected to churn out cash in the short term, with its operating cash flow predicted to expand by 71.7%. This is expected to flow down into an impressive return on equity of 25.2% over the next couple of years. In the previous year, SCHN has ramped up its bottom line by 13.1%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 29.9%. which is an optimistic signal for the future.
SCHN’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 SCHN manages its cash and cost levels well, which is a key determinant of the company’s health. SCHN’s has produced operating cash levels of 1.15x total debt over the past year, which implies that SCHN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Schindler Holding, I’ve put together three pertinent aspects you should look at:
Valuation: What is SCHN 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 SCHN is currently mispriced by the market.
Dividend Income vs Capital Gains: Does SCHN 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 SCHN as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SCHN? 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.
