Alicon Castalloy Limited (NSE:ALICON) 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 ALICON, it is a financially-robust , dividend-paying company with a a strong 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 Alicon Castalloy here.

Solid track record with adequate balance sheet and pays a dividend

In the previous year, ALICON has ramped up its bottom line by 37%, with its latest earnings level surpassing its average level over the last five years. Not only did ALICON outperformed its past performance, its growth also exceeded the Auto Components industry expansion, which generated a 26% earnings growth. This is an optimistic signal for the future. ALICON'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 implies that ALICON manages its cash and cost levels well, which is an important determinant of the company’s health. ALICON’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps ALICON expand.

Income investors would also be happy to know that ALICON is a great dividend company, with a current yield standing at 1.4%. ALICON has also been regularly increasing its dividend payments to shareholders over the past decade.

Next Steps:

For Alicon Castalloy, I've put together three important aspects you should further examine:

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

2. Valuation: What is ALICON 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 ALICON is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALICON? 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.