Is The Go-Ahead Group plc (LON:GOG) Potentially Underrated?
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on The Go-Ahead Group plc (LON:GOG) due to its excellent fundamentals in more than one area. GOG is a well-regarded dividend payer that has been able to sustain great financial health over the past. 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, read the full report on Go-Ahead Group here.
Excellent balance sheet average dividend payer
GOG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that GOG has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. GOG appears to have made good use of debt, producing operating cash levels of 0.61x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that GOG is a great dividend company, with a current yield standing at 5.0%. GOG has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Go-Ahead Group, there are three important factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for GOG’s future growth? Take a look at our free research report of analyst consensus for GOG’s outlook.
Historical Performance: What has GOG'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.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GOG? 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.
