Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Kier Group plc (LON:KIE) due to its excellent fundamentals in more than one area. KIE is a financially-robust company with a a strong track record of dividend payments and a buoyant growth outlook. In the following section, I expand a bit more 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 Kier Group here.
High growth potential with adequate balance sheet and pays a dividend
KIE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. KIE seems to have put its debt to good use, generating operating cash levels of 0.28x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
KIE’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.24%.
For Kier Group, I’ve compiled three fundamental aspects you should further examine:
- Historical Performance: What has KIE’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.
- Valuation: What is KIE 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 KIE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KIE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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