Attractive stocks have exceptional fundamentals. In the case of Smith & Nephew plc (LON:SN.), thereâs is a notable dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If youâre interested in understanding beyond my high-level commentary, take a look at the report on Smith & Nephew here.
SN.âs 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 indicates that SN. has sufficient cash flows and proper cash management in place, which is an important determinant of the companyâs health. SN. seems to have put its debt to good use, generating operating cash levels of 0.69x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the companyâs cash flows.
SN. 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 Smith & Nephew, Iâve put together three pertinent factors you should further examine:
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company announcements.
The author is an independent contributor and at the time of
publication had no position in the stocks mentioned. For errors
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