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 Ten Entertainment Group plc (LON:TEG), it is a financially-healthy , dividend-paying company with a an impressive track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my high-level commentary, read the full report on Ten Entertainment Group here.
Solid track record with excellent balance sheet and pays a dividend
Over the past few years, TEG has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did TEG outperformed its past performance, its growth also exceeded the Hospitality industry expansion, which generated a 8.2% earnings growth. This is what investors like to see! With a debt-to-equity ratio of 29.9%, TEG’s debt level is reasonable. This means that TEG’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. TEG's has produced operating cash levels of 1.02x total debt over the past year, which implies that TEG's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
TEG 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.
Next Steps:
For Ten Entertainment Group, I've compiled three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for TEG’s future growth? Take a look at our free research report of analyst consensus for TEG’s outlook.
- Valuation: What is TEG 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 TEG is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TEG? 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.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.