Advertisement
UK markets close in 6 hours 53 minutes
  • FTSE 100

    7,836.83
    -40.22 (-0.51%)
     
  • FTSE 250

    19,281.29
    -169.38 (-0.87%)
     
  • AIM

    741.08
    -4.21 (-0.56%)
     
  • GBP/EUR

    1.1679
    -0.0004 (-0.03%)
     
  • GBP/USD

    1.2439
    +0.0001 (+0.01%)
     
  • Bitcoin GBP

    51,721.74
    +2,300.83 (+4.66%)
     
  • CMC Crypto 200

    1,337.64
    +25.01 (+1.91%)
     
  • S&P 500

    5,011.12
    -11.09 (-0.22%)
     
  • DOW

    37,775.38
    +22.07 (+0.06%)
     
  • CRUDE OIL

    82.95
    +0.22 (+0.27%)
     
  • GOLD FUTURES

    2,395.20
    -2.80 (-0.12%)
     
  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     
  • HANG SENG

    16,224.14
    -161.73 (-0.99%)
     
  • DAX

    17,688.47
    -148.93 (-0.83%)
     
  • CAC 40

    7,975.81
    -47.45 (-0.59%)
     

Why We Think Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft (FRA:MUV2) Could Be Worth Looking At

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft (FRA:MUV2) 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 MUV2, it is a financially-robust , dividend-paying company with a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Münchener Rückversicherungs-Gesellschaft here.

6 star dividend payer with proven track record

In the past couple of years, MUV2 has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did MUV2 outperformed its past performance, its growth also surpassed the Insurance industry expansion, which generated a 5.1% earnings growth. This paints a buoyant picture for the company. MUV2’s debt-to-equity ratio stands at 10%, which means its debt level is acceptable. This means that MUV2’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. MUV2’s has produced operating cash levels of 1.09x total debt over the past year, which implies that MUV2’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

DB:MUV2 Income Statement Export January 23rd 19
DB:MUV2 Income Statement Export January 23rd 19

For those seeking income streams from their portfolio, MUV2 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.4%, making it one of the best dividend companies in the market.

DB:MUV2 Historical Dividend Yield January 23rd 19
DB:MUV2 Historical Dividend Yield January 23rd 19

Next Steps:

For Münchener Rückversicherungs-Gesellschaft, I’ve compiled three key aspects you should further examine:

ADVERTISEMENT
  1. Future Outlook: What are well-informed industry analysts predicting for MUV2’s future growth? Take a look at our free research report of analyst consensus for MUV2’s outlook.

  2. Valuation: What is MUV2 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 MUV2 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MUV2? 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.