Mediagrif Interactive Technologies Inc. (TSE:MDF): The Best Of Both Worlds

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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Mediagrif Interactive Technologies Inc. (TSE:MDF), it is a financially-sound company with a a strong history high-quality dividend payments, trading at a discount. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Mediagrif Interactive Technologies here.

Excellent balance sheet, good value and pays a dividend

MDF’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. MDF appears to have made good use of debt, producing operating cash levels of 0.55x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. MDF’s shares are now trading at a price below its true value based on its PE ratio of 13.45x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.

TSX:MDF Price Estimation Relative to Market, May 29th 2019
TSX:MDF Price Estimation Relative to Market, May 29th 2019

Income investors would also be happy to know that MDF is a great dividend company, with a current yield standing at 4.2%. MDF has also been regularly increasing its dividend payments to shareholders over the past decade.

TSX:MDF Historical Dividend Yield, May 29th 2019
TSX:MDF Historical Dividend Yield, May 29th 2019

Next Steps:

For Mediagrif Interactive Technologies, I’ve put together three pertinent aspects you should further examine:

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