Does The Data Make The Hour Glass Limited (SGX:AGS) An Attractive Investment?

The Hour Glass Limited (SGX:AGS) 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 AGS, it is a financially-healthy , dividend-paying company with a strong track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Hour Glass here.

Flawless balance sheet with solid track record and pays a dividend

In the previous year, AGS has ramped up its bottom line by 28%, with its latest earnings level surpassing its average level over the last five years. Not only did AGS outperformed its past performance, its growth also surpassed the Specialty Retail industry expansion, which generated a -5.6% earnings growth. This is what investors like to see! AGS 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 a key determinant of the company’s health. AGS appears to have made good use of debt, producing operating cash levels of 4.11x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SGX:AGS Income Statement, October 7th 2019
SGX:AGS Income Statement, October 7th 2019

For those seeking income streams from their portfolio, AGS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.8%.

SGX:AGS Historical Dividend Yield, October 7th 2019
SGX:AGS Historical Dividend Yield, October 7th 2019

Next Steps:

For Hour Glass, there are three essential factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for AGS’s future growth? Take a look at our free research report of analyst consensus for AGS’s outlook.
  2. Valuation: What is AGS 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 AGS is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AGS? 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.