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Why Fundamental Investors Might Love Ansell Limited (ASX:ANN)

Ansell Limited (ASX:ANN) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ANN, it is a dependable dividend payer that has been able to sustain great financial health over the past. 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 Ansell here.

Flawless balance sheet average dividend payer

ANN’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 implies that ANN manages its cash and cost levels well, which is a key determinant of the company’s health. ANN’s has produced operating cash levels of 0.28x total debt over the past year, which implies that ANN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ASX:ANN Historical Debt October 18th 18
ASX:ANN Historical Debt October 18th 18

ANN 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.

ASX:ANN Historical Dividend Yield October 18th 18
ASX:ANN Historical Dividend Yield October 18th 18

Next Steps:

For Ansell, there are three fundamental factors you should look at:

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

  2. Historical Performance: What has ANN’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.

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