Yahoo Finance A Look At Downer EDI Limited’s (ASX:DOW) Exceptional Fundamentals
Attractive stocks have exceptional fundamentals. In the case of Downer EDI Limited (ASX:DOW), there’s is a financially-sound company with a a strong track record of dividend payments and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Downer EDI here.
Adequate balance sheet with reasonable growth potential and pays a dividend
DOW’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 suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. DOW appears to have made good use of debt, producing operating cash levels of 0.38x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
DOW dishes out decent dividend payments over time, higher than the low-risk savings rate, which is what investors expect when they take on the risk of investing in the stock market.
Next Steps:
For Downer EDI, there are three pertinent aspects you should further research:
Historical Performance: What has DOW’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.
Valuation: What is DOW 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 DOW is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DOW? 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.
