Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Mazda Limited (NSE:MAZDALTD) due to its excellent fundamentals in more than one area. MAZDALTD is a financially-robust company with an impressive history of performance, trading at a discount. 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 Mazda here.
Flawless balance sheet established dividend payer
In the previous year, MAZDALTD has ramped up its bottom line by 33%, with its latest earnings level surpassing its average level over the last five years. Not only did MAZDALTD outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 13% earnings growth. This is what investors like to see! MAZDALTD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that MAZDALTD manages its cash and cost levels well, which is a crucial insight into the health of the company. MAZDALTD appears to have made good use of debt, producing operating cash levels of 7.57x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
MAZDALTD's shares are now trading at a price below its true value based on its PE ratio of 10.05x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.
Next Steps:
For Mazda, I've put together three essential aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for MAZDALTD’s future growth? Take a look at our free research report of analyst consensus for MAZDALTD’s outlook.
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Dividend Income vs Capital Gains: Does MAZDALTD return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from MAZDALTD as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MAZDALTD? 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.