Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Coromandel International Limited (NSE:COROMANDEL) due to its excellent fundamentals in more than one area. COROMANDEL is a financially-healthy , dividend-paying company with a a strong track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Coromandel International here.
Adequate balance sheet with proven track record and pays a dividend
COROMANDEL delivered a satisfying double-digit returns of 21% in the most recent year Unsurprisingly, COROMANDEL surpassed the Chemicals industry return of 13%, which gives us more confidence of the company’s capacity to drive earnings going forward. COROMANDEL 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 an important determinant of the company’s health. COROMANDEL’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps COROMANDEL expand.
COROMANDEL 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 Coromandel International, there are three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for COROMANDEL’s future growth? Take a look at our free research report of analyst consensus for COROMANDEL’s outlook.
- Valuation: What is COROMANDEL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether COROMANDEL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of COROMANDEL? 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 firstname.lastname@example.org.