Wm Morrison Supermarkets PLC (LON:MRW): A Fundamentally Attractive Investment

Attractive stocks have exceptional fundamentals. In the case of Wm Morrison Supermarkets PLC (LON:MRW), there’s is a notable dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Wm Morrison Supermarkets here.

Adequate balance sheet average dividend payer

MRW’s debt-to-equity ratio stands at 25%, which means its debt level is acceptable. This means that MRW’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. MRW’s has produced operating cash levels of 0.6x total debt over the past year, which implies that MRW’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:MRW Historical Debt January 1st 19
LSE:MRW Historical Debt January 1st 19

Income investors would also be happy to know that MRW is a great dividend company, with a current yield standing at 3.9%. MRW has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:MRW Historical Dividend Yield January 1st 19
LSE:MRW Historical Dividend Yield January 1st 19

Next Steps:

For Wm Morrison Supermarkets, there are three important factors you should look at:

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