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Attractive stocks have exceptional fundamentals. In the case of Aegis Logistics Limited (NSE:AEGISLOG), there's is a financially-sound company with a a great history of dividend payments and a buoyant growth outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Aegis Logistics here.
Exceptional growth potential with excellent balance sheet and pays a dividend
One reason why investors are attracted to AEGISLOG is its notable earnings growth potential in the near future of 23%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 50% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. AEGISLOG’s debt-to-equity ratio stands at 19%, which means its debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. AEGISLOG's has produced operating cash levels of 0.73x total debt over the past year, which implies that AEGISLOG's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that AEGISLOG is a great dividend company, with a current yield standing at 0.5%. AEGISLOG has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Aegis Logistics, I've compiled three essential aspects you should look at:
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Historical Performance: What has AEGISLOG'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.
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Valuation: What is AEGISLOG 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 AEGISLOG 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 AEGISLOG? 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.