Why I Like Lok’nStore Group Plc (LON:LOK)

Lok’nStore Group Plc (LON:LOK) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of LOK, it is a highly-regarded dividend payer 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 digger a bit deeper into my commentary, read the full report on Lok’nStore Group here.

Adequate balance sheet average dividend payer

LOK is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that LOK has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. With a debt-to-equity ratio of 36%, LOK’s debt level is reasonable. This implies that LOK has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt.

AIM:LOK Historical Debt, April 15th 2019
AIM:LOK Historical Debt, April 15th 2019

Income investors would also be happy to know that LOK is a great dividend company, with a current yield standing at 2.2%. LOK has also been regularly increasing its dividend payments to shareholders over the past decade.

AIM:LOK Historical Dividend Yield, April 15th 2019
AIM:LOK Historical Dividend Yield, April 15th 2019

Next Steps:

For Lok’nStore Group, I’ve put together three key factors you should look at:

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