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 Franklin Electric Co., Inc. (NASDAQ:FELE), it is a financially-healthy , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Franklin Electric here.
Flawless balance sheet with proven track record and pays a dividend
FELE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that FELE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. FELE appears to have made good use of debt, producing operating cash levels of 0.62x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
FELE 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 Franklin Electric, I’ve compiled three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for FELE’s future growth? Take a look at our free research report of analyst consensus for FELE’s outlook.
- Valuation: What is FELE 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 FELE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FELE? 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.