Yahoo Finance Why Brickworks Limited (ASX:BKW) Could Be Your Next Investment
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Attractive stocks have exceptional fundamentals. In the case of Brickworks Limited (ASX:BKW), there's is a financially-sound , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Brickworks here.
Flawless balance sheet with solid track record and pays a dividend
BKW delivered a bottom-line expansion of 25% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, BKW also outperformed its industry, which delivered a growth of -11%. This is what investors like to see! BKW is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. BKW seems to have put its debt to good use, generating operating cash levels of 0.48x 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.
BKW is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Brickworks, there are three important aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for BKW’s future growth? Take a look at our free research report of analyst consensus for BKW’s outlook.
Valuation: What is BKW 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 BKW is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BKW? 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.
