CSR Limited (ASX:CSR): Commentary On Fundamentals

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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on CSR Limited (ASX:CSR) due to its excellent fundamentals in more than one area. CSR is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on CSR here.

Flawless balance sheet average dividend payer

CSR’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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. CSR currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. CSR has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

ASX:CSR Historical Debt, June 28th 2019
ASX:CSR Historical Debt, June 28th 2019

Income investors would also be happy to know that CSR is one of the highest dividend payers in the market, with current dividend yield standing at 6.6%. CSR has also been regularly increasing its dividend payments to shareholders over the past decade.

ASX:CSR Historical Dividend Yield, June 28th 2019
ASX:CSR Historical Dividend Yield, June 28th 2019

Next Steps:

For CSR, there are three essential factors you should further examine:

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