Spirent Communications plc (LON:SPT): A Fundamentally Attractive Investment

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Spirent Communications plc (LON:SPT) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SPT, it is a dependable dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Spirent Communications here.

Flawless balance sheet average dividend payer

SPT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Investors should not worry about SPT’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. SPT has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

LSE:SPT Historical Debt February 11th 19
LSE:SPT Historical Debt February 11th 19

For those seeking income streams from their portfolio, SPT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.1%.

LSE:SPT Historical Dividend Yield February 11th 19
LSE:SPT Historical Dividend Yield February 11th 19

Next Steps:

For Spirent Communications, I’ve compiled three key factors you should further research:

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