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Knoll, Inc. (NYSE:KNL) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of KNL, it is a financially-robust company with a great history superior dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Knoll here.
Good value with adequate balance sheet and pays a dividend
KNL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that KNL manages its cash and cost levels well, which is a key determinant of the company’s health. KNL’s has produced operating cash levels of 0.26x total debt over the past year, which implies that KNL’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. KNL is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of KNL’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, KNL’s share price is trading below the group’s average. This bolsters the proposition that KNL’s price is currently discounted.
Income investors would also be happy to know that KNL is a great dividend company, with a current yield standing at 3.0%. KNL has also been regularly increasing its dividend payments to shareholders over the past decade.
For Knoll, I’ve compiled three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for KNL’s future growth? Take a look at our free research report of analyst consensus for KNL’s outlook.
- Historical Performance: What has KNL’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 KNL? 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 firstname.lastname@example.org. 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.