In This Article:
Saksoft Limited (NSE:SAKSOFT) 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 SAKSOFT, it is a financially-healthy , dividend-paying company with a strong track record of performance. Below is a brief commentary 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 Saksoft here.
Outstanding track record with flawless balance sheet and pays a dividend
SAKSOFT delivered a bottom-line expansion of 55% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 22% return to shareholders, which is what investors like to see! SAKSOFT's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. SAKSOFT's has produced operating cash levels of 0.51x total debt over the past year, which implies that SAKSOFT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that SAKSOFT is a great dividend company, with a current yield standing at 1.6%. SAKSOFT has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Saksoft, there are three pertinent aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for SAKSOFT’s future growth? Take a look at our free research report of analyst consensus for SAKSOFT’s outlook.
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Valuation: What is SAKSOFT 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 SAKSOFT 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 SAKSOFT? 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.