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XP Power Limited (LON:XPP) Has Attractive Fundamentals

I've been keeping an eye on XP Power Limited (LON:XPP) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe XPP has a lot to offer. Basically, it is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on XP Power here.

Established dividend payer with adequate balance sheet

XPP's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that XPP has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. XPP seems to have put its debt to good use, generating operating cash levels of 0.59x 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.

LSE:XPP Historical Debt, October 2nd 2019
LSE:XPP Historical Debt, October 2nd 2019

For those seeking income streams from their portfolio, XPP is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.4%.

LSE:XPP Historical Dividend Yield, October 2nd 2019
LSE:XPP Historical Dividend Yield, October 2nd 2019

Next Steps:

For XP Power, I've compiled three relevant aspects you should further research:

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

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