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Why Alliance Pharma plc (LON:APH) Could Have A Place In Your Portfolio

Attractive stocks have exceptional fundamentals. In the case of Alliance Pharma plc (LON:APH), there's is a notable 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. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Alliance Pharma here.

Established dividend payer with adequate balance sheet

With a debt-to-equity ratio of 38%, APH’s debt level is acceptable. This means that APH’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. APH seems to have put its debt to good use, generating operating cash levels of 0.23x 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.

AIM:APH Historical Debt, September 4th 2019
AIM:APH Historical Debt, September 4th 2019

APH is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

AIM:APH Historical Dividend Yield, September 4th 2019
AIM:APH Historical Dividend Yield, September 4th 2019

Next Steps:

For Alliance Pharma, I've compiled three important factors you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for APH’s future growth? Take a look at our free research report of analyst consensus for APH’s outlook.

  2. Historical Performance: What has APH'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 APH? 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.