In This Article:
Independence Group NL (ASX:IGO) 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 IGO, it is a financially-healthy , dividend-paying company with an impressive history of performance. 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, take a look at the report on Independence Group here.
Excellent balance sheet with proven track record and pays a dividend
IGO delivered a bottom-line expansion of 44% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, IGO also outperformed its industry, which delivered a growth of 7.8%. This is an optimistic signal for the future. IGO 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 key determinant of the company’s health. IGO seems to have put its debt to good use, generating operating cash levels of 4.4x 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.
IGO 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 Independence Group, there are three relevant factors you should further research:
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Future Outlook: What are well-informed industry analysts predicting for IGO’s future growth? Take a look at our free research report of analyst consensus for IGO’s outlook.
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Valuation: What is IGO 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 IGO 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 IGO? 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.