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Why Fundamental Investors Might Love Boiron SA (EPA:BOI)

I've been keeping an eye on Boiron SA (EPA:BOI) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe BOI has a lot to offer. Basically, it is a financially-robust company with a great track record high-grade dividend payments, trading at a great value. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Boiron here.

Flawless balance sheet established dividend payer

BOI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that BOI has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. BOI appears to have made good use of debt, producing operating cash levels of 14.06x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. BOI is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of BOI's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, BOI's share price is trading below the group's average. This supports the theory that BOI is potentially underpriced.

ENXTPA:BOI Intrinsic value, August 30th 2019
ENXTPA:BOI Intrinsic value, August 30th 2019

BOI 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.

ENXTPA:BOI Historical Dividend Yield, August 30th 2019
ENXTPA:BOI Historical Dividend Yield, August 30th 2019

Next Steps:

For Boiron, I've put together three key factors you should further research:

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

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