Stock Analysis

Why Mediaset España Comunicación, S.A. (BME:TL5) Is An Attractive Investment To Consider

Mediaset España Comunicación, S.A. (BME:TL5) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TL5, it is a financially-healthy , dividend-paying company with a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Mediaset España Comunicación here.

Flawless balance sheet with proven track record and pays a dividend

Over the past few years, TL5 has demonstrated a proven ability to generate robust returns of 22% Not surprisingly, TL5 outperformed its industry which returned 10%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. TL5 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that TL5 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. TL5 appears to have made good use of debt, producing operating cash levels of 8289x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

BME:TL5 Income Statement, April 16th 2019
BME:TL5 Income Statement, April 16th 2019

TL5 is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.

BME:TL5 Historical Dividend Yield, April 16th 2019
BME:TL5 Historical Dividend Yield, April 16th 2019

Next Steps:

For Mediaset España Comunicación, I've compiled three key factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for TL5’s future growth? Take a look at our free research report of analyst consensus for TL5’s outlook.
  2. Valuation: What is TL5 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 TL5 is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TL5? 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.

About BME:TL5

Mediaset España Comunicación

Mediaset España Comunicación, S.A., together with its subsidiaries, engages in the television broadcasting business in Spain.

Undervalued with excellent balance sheet.

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