Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Whitehaven Coal Limited (ASX:WHC) due to its excellent fundamentals in more than one area. WHC is a well-regarded 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. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Whitehaven Coal here.
Excellent balance sheet established dividend payer
WHC'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 WHC manages its cash and cost levels well, which is a key determinant of the company’s health. WHC seems to have put its debt to good use, generating operating cash levels of 5.27x 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.
For those seeking income streams from their portfolio, WHC is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 16%, making it one of the best dividend companies in the market.
For Whitehaven Coal, I've put together three key aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for WHC’s future growth? Take a look at our free research report of analyst consensus for WHC’s outlook.
- Historical Performance: What has WHC'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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WHC? 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 email@example.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.