Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Abbott India Limited (NSE:ABBOTINDIA) due to its excellent fundamentals in more than one area. ABBOTINDIA is a financially-robust company with a great track record of dividend payments and an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Abbott India here.
Flawless balance sheet established dividend payer
ABBOTINDIA’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to more than double in the upcoming year. This is expected to flow down into an impressive return on equity of 24% over the next couple of years. ABBOTINDIA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that ABBOTINDIA manages its cash and cost levels well, which is an important determinant of the company’s health. Investors should not worry about ABBOTINDIA’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a ₹180b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
ABBOTINDIA 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 Abbott India, I’ve put together three relevant aspects you should further research:
- Historical Performance: What has ABBOTINDIA’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.
- Valuation: What is ABBOTINDIA 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 ABBOTINDIA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ABBOTINDIA? 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 firstname.lastname@example.org. 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.