Yahoo Finance Should Challenger Limited (ASX:CGF) Be Your Next Stock Pick?
Challenger Limited (ASX:CGF) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CGF, it is a financially-healthy , dividend-paying company with a a strong track record of performance. 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, take a look at the report on Challenger here.
Established dividend payer with proven track record
Over the past year, CGF has grown its earnings by 32.76%, with its most recent figure exceeding its annual average over the past five years. Not only did CGF outperformed its past performance, its growth also exceeded the Diversified Financial industry expansion, which generated a 5.37% earnings growth. This is what investors like to see! CGF’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that CGF has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. CGF appears to have made good use of debt, producing operating cash levels of 0.26x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, CGF is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.81%.
Next Steps:
For Challenger, I’ve put together three key aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for CGF’s future growth? Take a look at our free research report of analyst consensus for CGF’s outlook.
Valuation: What is CGF 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 CGF is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CGF? 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 pass 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.
