Why Jersey Electricity plc (LON:JEL) Could Have A Place In Your Portfolio

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Attractive stocks have exceptional fundamentals. In the case of Jersey Electricity plc (LON:JEL), there’s is a well-regarded 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. For those interested in digger a bit deeper into my commentary, take a look at the report on Jersey Electricity here.

Established dividend payer with adequate balance sheet

JEL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that JEL has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. JEL seems to have put its debt to good use, generating operating cash levels of 0.89x 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:JEL Historical Debt February 12th 19
LSE:JEL Historical Debt February 12th 19

JEL 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.

LSE:JEL Historical Dividend Yield February 12th 19
LSE:JEL Historical Dividend Yield February 12th 19

Next Steps:

For Jersey Electricity, there are three pertinent factors you should further research:

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