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Why National Presto Industries, Inc. (NYSE:NPK) Is An Attractive Investment To Consider

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National Presto Industries, Inc. (NYSE:NPK) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of NPK, it is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on National Presto Industries here.

Excellent balance sheet average dividend payer

NPK'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 indicates that NPK has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. NPK currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NYSE:NPK Historical Debt, July 9th 2019
NYSE:NPK Historical Debt, July 9th 2019

For those seeking income streams from their portfolio, NPK is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 6.4%, making it one of the best dividend companies in the market.

NYSE:NPK Historical Dividend Yield, July 9th 2019
NYSE:NPK Historical Dividend Yield, July 9th 2019

Next Steps:

For National Presto Industries, I've put together three important factors you should look at:

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

  2. Historical Performance: What has NPK'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 NPK? 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.