A Holistic Look At Caltex Australia Limited (ASX:CTX)

Attractive stocks have exceptional fundamentals. In the case of Caltex Australia Limited (ASX:CTX), there’s is a financially-sound , dividend-paying company with a an impressive history 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, take a look at the report on Caltex Australia here.

Outstanding track record with flawless balance sheet and pays a dividend

Over the past year, CTX has grown its earnings by 32%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 22% return to shareholders, which is an optimistic signal for the future. CTX is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CTX manages its cash and cost levels well, which is an important determinant of the company’s health. CTX seems to have put its debt to good use, generating operating cash levels of 0.72x 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.

ASX:CTX Income Statement Export January 28th 19

Income investors would also be happy to know that CTX is a great dividend company, with a current yield standing at 4.4%. CTX has also been regularly increasing its dividend payments to shareholders over the past decade.

ASX:CTX Historical Dividend Yield January 28th 19

Next Steps:

For Caltex Australia, there are three essential factors you should further examine:

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

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

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