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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 Big Yellow Group Plc (LON:BYG), it 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. For those interested in digger a bit deeper into my commentary, take a look at the report on Big Yellow Group here.
Established dividend payer with adequate balance sheet
BYG’s debt-to-equity ratio stands at 27%, which means its debt level is acceptable. 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. BYG appears to have made good use of debt, producing operating cash levels of 0.23x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
BYG is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Big Yellow Group, I’ve put together three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for BYG’s future growth? Take a look at our free research report of analyst consensus for BYG’s outlook.
- Historical Performance: What has BYG’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 BYG? 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 email@example.com.