Good value with adequate balance sheet and pays a dividend
SXP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SXP has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. SXP's has produced operating cash levels of 0.42x total debt over the past year, which implies that SXP's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. SXP's shares are now trading at a price below its true value based on its PE ratio of 8.76x, compared to the industry and wider stock market ratio, which means it is relatively cheaper than its peers.
SXP's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.
For Supremex, I've compiled three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for SXP’s future growth? Take a look at our free research report of analyst consensus for SXP’s outlook.
- Historical Performance: What has SXP'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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SXP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.