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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Treatt plc (LON:TET) due to its excellent fundamentals in more than one area. TET is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Treatt here.
Excellent balance sheet average dividend payer
TET’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 implies that TET manages its cash and cost levels well, which is a key determinant of the company’s health. With a debt-to-equity ratio of 27%, TET’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future.
Income investors would also be happy to know that TET is a great dividend company, with a current yield standing at 1.1%. TET has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Treatt, there are three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TET’s future growth? Take a look at our free research report of analyst consensus for TET’s outlook.
- Historical Performance: What has TET’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TET? 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.