Yahoo Finance Reasons Why I Like Perpetual Limited (ASX:PPT)
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Perpetual Limited (ASX:PPT), 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. If you’re interested in understanding beyond my high-level commentary, read the full report on Perpetual here.
Flawless balance sheet established dividend payer
PPT delivered a satisfying double-digit returns of 21.53% in the most recent year Unsurprisingly, PPT surpassed the Capital Markets industry return of 9.90%, which gives us more confidence of the company’s capacity to drive earnings going forward. PPT’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that PPT has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. PPT appears to have made good use of debt, producing operating cash levels of 1.69x 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, PPT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 6.82%, making it one of the best dividend companies in the market.
Next Steps:
For Perpetual, there are three essential aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for PPT’s future growth? Take a look at our free research report of analyst consensus for PPT’s outlook.
Valuation: What is PPT 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 PPT is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PPT? 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.
