Reasons Why I Like EUROKAI GmbH & Co KGaA (FRA:EUK3)

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 EUROKAI GmbH & Co KGaA (FRA:EUK3), 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 understanding where the figures come from and want to see the analysis, take a look at the report on EUROKAI GmbH KGaA here.

Flawless balance sheet with solid track record and pays a dividend

EUK3 delivered a bottom-line expansion of 19.6% 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, EUK3 also outperformed its industry, which delivered a growth of 12.5%. This is an notable feat for the company. EUK3’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that EUK3 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. EUK3’s has produced operating cash levels of 0.82x total debt over the past year, which implies that EUK3’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

DB:EUK3 Income Statement Export August 29th 18
DB:EUK3 Income Statement Export August 29th 18

EUK3 is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

DB:EUK3 Historical Dividend Yield August 29th 18
DB:EUK3 Historical Dividend Yield August 29th 18

Next Steps:

For EUROKAI GmbH KGaA, there are three pertinent factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for EUK3’s future growth? Take a look at our free research report of analyst consensus for EUK3’s outlook.
  2. Valuation: What is EUK3 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 EUK3 is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EUK3? 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.