Stock Analysis

Should You Buy Standard Life Aberdeen plc (LON:SLA) Based On These Aspects?

LSE:ABDN
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I've been keeping an eye on Standard Life Aberdeen plc (LON:SLA) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SLA has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a an impressive history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Standard Life Aberdeen here.
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Solid track record with excellent balance sheet and pays a dividend

Over the past year, SLA has grown its earnings by 89.95%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 20.64%. which is an optimistic signal for the future. SLA's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that SLA has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. SLA seems to have put its debt to good use, generating operating cash levels of 0.73x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

LSE:SLA Income Statement June 14th 18
LSE:SLA Income Statement June 14th 18

Income investors would also be happy to know that SLA is one of the highest dividend payers in the market, with current dividend yield standing at 6.08%. SLA has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:SLA Historical Dividend Yield June 14th 18
LSE:SLA Historical Dividend Yield June 14th 18

Next Steps:

For Standard Life Aberdeen, I've put together three key factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for SLA’s future growth? Take a look at our free research report of analyst consensus for SLA’s outlook.
  2. Valuation: What is SLA 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 SLA is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SLA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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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.