Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Australian Pharmaceutical Industries Limited (ASX:API) due to its excellent fundamentals in more than one area. API 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. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Australian Pharmaceutical Industries here.

Flawless balance sheet average dividend payer

API is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. API appears to have made good use of debt, producing operating cash levels of 1.73x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

API 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.

Next Steps:

For Australian Pharmaceutical Industries, I’ve compiled three important factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for API’s future growth? Take a look at our free research report of analyst consensus for API’s outlook.

2. Historical Performance: What has API’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.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of API? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.