Should You Consider Hera S.p.A. (BIT:HER)?
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Hera S.p.A. (BIT:HER) due to its excellent fundamentals in more than one area. HER is a financially-sound , dividend-paying company with a great history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Hera here.
Established dividend payer with adequate balance sheet
Over the past few years, HER has demonstrated a proven ability to generate robust returns of 3.9% Not surprisingly, HER outperformed its industry which returned 3.6%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. HER's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. HER's has produced operating cash levels of 0.22x total debt over the past year, which implies that HER'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 HER is a great dividend company, with a current yield standing at 2.8%. HER has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Hera, I've put together three relevant aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for HER’s future growth? Take a look at our free research report of analyst consensus for HER’s outlook.
Valuation: What is HER 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 HER is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HER? 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.
