Strabag SE (VIE:STR) 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 STR, it is a financially-healthy , dividend-paying company with a 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 digger a bit deeper into my commentary, take a look at the report on Strabag here.
Excellent balance sheet with proven track record and pays a dividend
STR delivered a bottom-line expansion of 47% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, STR also outperformed its industry, which delivered a growth of 14%. This paints a buoyant picture for the company. STR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that STR has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. STR’s has produced operating cash levels of 0.9x total debt over the past year, which implies that STR’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
STR is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Strabag, I’ve compiled three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for STR’s future growth? Take a look at our free research report of analyst consensus for STR’s outlook.
- Valuation: What is STR 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 STR is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of STR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.