Attractive stocks have exceptional fundamentals. In the case of Acadian Timber Corp. (TSE:ADN), there’s is a financially-robust , dividend-paying company with an impressive track record of performance. 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 Acadian Timber here.
Adequate balance sheet with proven track record and pays a dividend
ADN delivered a bottom-line expansion of 32% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did ADN outperformed its past performance, its growth also surpassed the Forestry industry expansion, which generated a -58% earnings growth. This is an optimistic signal for the future. ADN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that ADN manages its cash and cost levels well, which is an important determinant of the company’s health. With a debt-to-equity ratio of 33%, ADN’s debt level is reasonable. This implies that ADN has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt.
Income investors would also be happy to know that ADN is one of the highest dividend payers in the market, with current dividend yield standing at 6.9%. ADN has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Acadian Timber, there are three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ADN’s future growth? Take a look at our free research report of analyst consensus for ADN’s outlook.
- Valuation: What is ADN 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 ADN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ADN? 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.