Why I Like Marine Products Corporation (NYSE:MPX)
Attractive stocks have exceptional fundamentals. In the case of Marine Products Corporation (NYSE:MPX), there’s is a financially-robust , dividend-paying company with a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Marine Products here.
Flawless balance sheet with outstanding track record and pays a dividend
In the previous year, MPX has ramped up its bottom line by 38%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 34%. which is what investors like to see! MPX’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 an important determinant of the company’s health. MPX currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For those seeking income streams from their portfolio, MPX is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.9%.
Next Steps:
For Marine Products, I’ve compiled three key factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for MPX’s future growth? Take a look at our free research report of analyst consensus for MPX’s outlook.
Valuation: What is MPX 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 MPX is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MPX? 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.
