Brembo S.p.A. (BIT:BRE): The Best Of Both Worlds

Brembo S.p.A. (BIT:BRE) 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 BRE, it is a dependable dividend-paying company 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 digging a bit deeper into my commentary, take a look at the report on Brembo here.

Excellent balance sheet established dividend payer

BRE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that BRE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. BRE seems to have put its debt to good use, generating operating cash levels of 0.65x 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.

BIT:BRE Historical Debt, July 29th 2019
BIT:BRE Historical Debt, July 29th 2019

Income investors would also be happy to know that BRE is a great dividend company, with a current yield standing at 2.1%. BRE has also been regularly increasing its dividend payments to shareholders over the past decade.

BIT:BRE Historical Dividend Yield, July 29th 2019
BIT:BRE Historical Dividend Yield, July 29th 2019

Next Steps:

For Brembo, I’ve compiled three fundamental aspects you should further examine:

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