J B Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM): A Fundamentally Attractive Investment

In This Article:

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of J B Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM), it is a notable dividend payer 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, take a look at the report on J. B. Chemicals & Pharmaceuticals here.

Flawless balance sheet average dividend payer

JBCHEPHARM’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. JBCHEPHARM seems to have put its debt to good use, generating operating cash levels of 4.2x 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.

NSEI:JBCHEPHARM Historical Debt November 21st 18
NSEI:JBCHEPHARM Historical Debt November 21st 18

For those seeking income streams from their portfolio, JBCHEPHARM is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 0.7%.

NSEI:JBCHEPHARM Historical Dividend Yield November 21st 18
NSEI:JBCHEPHARM Historical Dividend Yield November 21st 18

Next Steps:

For J. B. Chemicals & Pharmaceuticals, I’ve put together three important factors you should further research:

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

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