As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of South Port New Zealand Limited (NZSE:SPN), it is a financially-sound , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on South Port New Zealand here.
Excellent balance sheet with proven track record and pays a dividend
SPN delivered a satisfying double-digit returns of 23% in the most recent year Unsurprisingly, SPN surpassed the Infrastructure industry return of 8.3%, which gives us more confidence of the company’s capacity to drive earnings going forward. With a debt-to-equity ratio of 31%, SPN’s debt level is reasonable. This implies that SPN has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. SPN’s has produced operating cash levels of 1.04x total debt over the past year, which implies that SPN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
SPN 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 South Port New Zealand, there are three relevant factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for SPN’s future growth? Take a look at our free research report of analyst consensus for SPN’s outlook.
- Valuation: What is SPN 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 SPN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SPN? 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.