Should You Be Holding Leifheit Aktiengesellschaft (FRA:LEI)?

In This Article:

Leifheit Aktiengesellschaft (FRA:LEI) 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 LEI, it is a notable dividend-paying company 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. If you’re interested in understanding beyond my high-level commentary, read the full report on Leifheit here.

Flawless balance sheet average dividend payer

LEI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that LEI has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. LEI currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. LEI 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.

DB:LEI Historical Debt October 22nd 18
DB:LEI Historical Debt October 22nd 18

LEI’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

DB:LEI Historical Dividend Yield October 22nd 18
DB:LEI Historical Dividend Yield October 22nd 18

Next Steps:

For Leifheit, I’ve put together three important aspects you should further research:

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

  2. Historical Performance: What has LEI’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 LEI? 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.