Should You Consider NWF Group plc (LON:NWF)?

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NWF Group plc (LON:NWF) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of NWF, it is a financially-sound , dividend-paying company with a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on NWF Group here.

Flawless balance sheet established dividend payer

NWF delivered a bottom-line expansion of 42% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did NWF outperformed its past performance, its growth also surpassed the Oil and Gas industry expansion, which generated a 32% earnings growth. This is what investors like to see! NWF’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 NWF manages its cash and cost levels well, which is a key determinant of the company’s health. NWF seems to have put its debt to good use, generating operating cash levels of 1.87x 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.

AIM:NWF Income Statement Export November 22nd 18
AIM:NWF Income Statement Export November 22nd 18

NWF 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.

AIM:NWF Historical Dividend Yield November 22nd 18
AIM:NWF Historical Dividend Yield November 22nd 18

Next Steps:

For NWF Group, I’ve compiled three key factors you should look at:

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

  2. Valuation: What is NWF 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 NWF is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NWF? 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.