Koninklijke DSM N.V. (AMS:DSM): A Fundamentally Attractive Investment

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Koninklijke DSM N.V. (AMS:DSM) due to its excellent fundamentals in more than one area. DSM is a notable dividend payer that has been able to sustain great financial health over the past. 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, take a look at the report on Koninklijke DSM here.

Flawless balance sheet average dividend payer

DSM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that DSM manages its cash and cost levels well, which is a crucial insight into the health of the company. DSM’s has produced operating cash levels of 0.49x total debt over the past year, which implies that DSM’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTAM:DSM Historical Debt January 15th 19
ENXTAM:DSM Historical Debt January 15th 19

Income investors would also be happy to know that DSM is a great dividend company, with a current yield standing at 2.4%. DSM has also been regularly increasing its dividend payments to shareholders over the past decade.

ENXTAM:DSM Historical Dividend Yield January 15th 19
ENXTAM:DSM Historical Dividend Yield January 15th 19

Next Steps:

For Koninklijke DSM, I’ve put together three key aspects you should look at:

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