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I've been keeping an eye on Aquila SA (EPA:ALAQU) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ALAQU has a lot to offer. Basically, it is a financially-sound , dividend-paying company with an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Aquila here.
Adequate balance sheet with proven track record and pays a dividend
ALAQU delivered a satisfying double-digit returns of 28% in the most recent year. Unsurprisingly, ALAQU surpassed the Commercial Services industry return of 12%, which gives us more confidence of the company's capacity to drive earnings going forward. ALAQU's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ALAQU manages its cash and cost levels well, which is a crucial insight into the health of the company. Investors should not worry about ALAQU’s debt levels because the company has a very miniscule amount on its books. ALAQU has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For those seeking income streams from their portfolio, ALAQU is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 7.8%, making it one of the best dividend companies in the market.
Next Steps:
For Aquila, I've put together three relevant factors you should further research:
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Future Outlook: What are well-informed industry analysts predicting for ALAQU’s future growth? Take a look at our free research report of analyst consensus for ALAQU’s outlook.
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Valuation: What is ALAQU 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 ALAQU is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALAQU? 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 editorial-team@simplywallst.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.