UOL Group Limited (SGX:U14): Commentary On Fundamentals

UOL Group Limited (SGX:U14) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of U14, it 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, read the full report on UOL Group here.

Excellent balance sheet established dividend payer

U14’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that U14 manages its cash and cost levels well, which is an important determinant of the company’s health. U14’s debt-to-equity ratio stands at 32%, which means its debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future.

SGX:U14 Historical Debt January 15th 19
SGX:U14 Historical Debt January 15th 19

Income investors would also be happy to know that U14 is a great dividend company, with a current yield standing at 2.7%. U14 has also been regularly increasing its dividend payments to shareholders over the past decade.

SGX:U14 Historical Dividend Yield January 15th 19
SGX:U14 Historical Dividend Yield January 15th 19

Next Steps:

For UOL Group, I’ve compiled three essential factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for U14’s future growth? Take a look at our free research report of analyst consensus for U14’s outlook.
  2. Historical Performance: What has U14’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 U14? 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.