CEWE Stiftung & Co. KGaA (FRA:CWC): The Best Of Both Worlds

In this article:

I’ve been keeping an eye on CEWE Stiftung & Co. KGaA (FRA:CWC) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CWC has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a a great 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 CEWE Stiftung KGaA here.

Excellent balance sheet established dividend payer

CWC has a strong track record of performance. In the previous year, CWC delivered an impressive double-digit return of 7.6% Unsurprisingly, CWC surpassed the industry return of 5.2%, which gives us more confidence of the company’s capacity to drive earnings going forward. With a debt-to-equity ratio of 26%, CWC’s debt level is acceptable. This implies that CWC 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. CWC seems to have put its debt to good use, generating operating cash levels of 1.23x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

DB:CWC Income Statement Export January 19th 19
DB:CWC Income Statement Export January 19th 19

CWC 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.

DB:CWC Historical Dividend Yield January 19th 19
DB:CWC Historical Dividend Yield January 19th 19

Next Steps:

For CEWE Stiftung KGaA, I’ve put together three pertinent aspects you should further research:

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

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

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

Advertisement