InvoCare Limited (ASX:IVC) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of IVC, it is a financially-robust , dividend-paying company with a a great track record of performance. 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 InvoCare here.
Outstanding track record established dividend payer
Over the past year, IVC has grown its earnings by 37.34%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 34.54%, which is what investors like to see! IVC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that IVC has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. IVC appears to have made good use of debt, producing operating cash levels of 0.31x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
IVC 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 InvoCare, there are three relevant aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for IVC’s future growth? Take a look at our free research report of analyst consensus for IVC’s outlook.
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Valuation: What is IVC 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 IVC 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 IVC? 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 pass 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.