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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on D'Ieteren SA (EBR:DIE) due to its excellent fundamentals in more than one area. DIE is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on D'Ieteren here.
Flawless balance sheet average dividend payer
DIE's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that DIE manages its cash and cost levels well, which is a key determinant of the company's health. DIE appears to have made good use of debt, producing operating cash levels of 3.24x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
DIE pays a decent dividend yield to its shareholders, higher than the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.
For D'Ieteren, I've put together three important factors you should look at:
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.