Why South Port New Zealand Limited (NZSE:SPN) Is An Attractive Investment To Consider
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South Port New Zealand Limited (NZSE:SPN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SPN, it is a financially-sound , dividend-paying company with a strong track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on South Port New Zealand here.
Excellent balance sheet with proven track record and pays a dividend
SPN has a strong track record of performance. In the previous year, SPN delivered an impressive double-digit return of 23%. Not surprisingly, SPN outperformed its industry which returned 8.3%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. SPN’s debt-to-equity ratio stands at 31%, which means its debt level is acceptable. This means that SPN’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. SPN appears to have made good use of debt, producing operating cash levels of 1.04x 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 SPN is a great dividend company, with a current yield standing at 4.0%. SPN has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For South Port New Zealand, I've compiled three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for SPN’s future growth? Take a look at our free research report of analyst consensus for SPN’s outlook.
Valuation: What is SPN 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 SPN is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SPN? 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.
