Why Fundamental Investors Might Love Renk Aktiengesellschaft (FRA:ZAR)

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Renk Aktiengesellschaft (FRA:ZAR) 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 ZAR, it is a dependable dividend payer that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on Renk here.

Flawless balance sheet average dividend payer

ZAR’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Investors should not worry about ZAR’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. ZAR 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.

DB:ZAR Historical Debt, July 17th 2019
DB:ZAR Historical Debt, July 17th 2019

ZAR 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.

DB:ZAR Historical Dividend Yield, July 17th 2019
DB:ZAR Historical Dividend Yield, July 17th 2019

Next Steps:

For Renk, there are three relevant aspects you should look at:

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