Attractive stocks have exceptional fundamentals. In the case of Aperam S.A. (AMS:APAM), there’s is a financially-healthy company with a an impressive track record high-grade dividend payments, trading at a discount. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Aperam here.
Flawless balance sheet, good value and pays a dividend
APAM’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 APAM manages its cash and cost levels well, which is a crucial insight into the health of the company. APAM seems to have put its debt to good use, generating operating cash levels of 1.19x 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. APAM’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of APAM’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the metals and mining industry, APAM is also trading below its peers, relative to earnings generated. This further reaffirms that APAM is potentially undervalued.
APAM is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
For Aperam, I’ve put together three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for APAM’s future growth? Take a look at our free research report of analyst consensus for APAM’s outlook.
- Historical Performance: What has APAM’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 APAM? 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 email@example.com. 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.