A Look At Galliford Try plc’s (LON:GFRD) Exceptional Fundamentals

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I’ve been keeping an eye on Galliford Try plc (LON:GFRD) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe GFRD has a lot to offer. Basically, it is a notable dividend-paying company with a a great track record of performance, trading at a great value. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Galliford Try here.

Established dividend payer and good value

In the past couple of years, GFRD has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did GFRD outperformed its past performance, its growth also exceeded the Construction industry expansion, which generated a 13% earnings growth. This is what investors like to see! GFRD’s share price is trading below its true value according to its price-to-earnings ratio of 5.23x compared to its industry as well as the wider stock market, making it a relatively cheap stock compared to its peers.

LSE:GFRD Income Statement, April 30th 2019
LSE:GFRD Income Statement, April 30th 2019

For those seeking income streams from their portfolio, GFRD is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 13%, making it one of the best dividend companies in the market.

LSE:GFRD Historical Dividend Yield, April 30th 2019
LSE:GFRD Historical Dividend Yield, April 30th 2019

Next Steps:

For Galliford Try, I’ve compiled three fundamental factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for GFRD’s future growth? Take a look at our free research report of analyst consensus for GFRD’s outlook.
  2. Financial Health: Are GFRD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GFRD? 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.