In This Article:
Attractive stocks have exceptional fundamentals. In the case of Singapore Telecommunications Limited (SGX:Z74), there’s is a financially-healthy , dividend-paying company with a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Singapore Telecommunications here.
Established dividend payer with adequate balance sheet
Over the past year, Z74 has grown its earnings by 42.0%, with its most recent figure exceeding its annual average over the past five years. Not only did Z74 outperformed its past performance, its growth also surpassed the Telecom industry expansion, which generated a 9.9% earnings growth. This paints a buoyant picture for the company. Z74’s debt-to-equity ratio stands at 30.6%, which means its debt level is reasonable. This implies that Z74 has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. Z74’s has produced operating cash levels of 0.64x total debt over the past year, which implies that Z74’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Z74 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 Singapore Telecommunications, I’ve compiled three essential aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for Z74’s future growth? Take a look at our free research report of analyst consensus for Z74’s outlook.
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Valuation: What is Z74 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 Z74 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 Z74? 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.