Yahoo Finance Why Ferrexpo Plc (LON:FXPO) Could Be Your Next Investment
Ferrexpo Plc (LON:FXPO) 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 FXPO, it is a financially-healthy , dividend-paying company with a great track record of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Ferrexpo here.
Flawless balance sheet with outstanding track record and pays a dividend
In the previous year, FXPO has ramped up its bottom line by 37%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 42% return to shareholders, which paints a buoyant picture for the company. FXPO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that FXPO has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. FXPO's has produced operating cash levels of 1.07x total debt over the past year, which implies that FXPO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, FXPO is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 9.9%, making it one of the best dividend companies in the market.
Next Steps:
For Ferrexpo, I've compiled three key aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for FXPO’s future growth? Take a look at our free research report of analyst consensus for FXPO’s outlook.
Valuation: What is FXPO 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 FXPO is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FXPO? 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.
