Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on GAIL (India) Limited (NSE:GAIL) due to its excellent fundamentals in more than one area. GAIL
, dividend-paying company with a
Below, I’ve touched on some key aspects you should know on a high level.
For those interested in understanding where the figures come from and want to see the analysis,
take a look at the
report on GAIL (India) here.
Excellent balance sheet established dividend payer
In the previous year, GAIL has ramped up its bottom line by 42%, with its latest earnings level surpassing its average level over the last five years.
In addition to beating its historical values, GAIL also outperformed its industry, which delivered a growth of 33%.
This is what investors like to see!
With a debt-to-equity ratio of 7.7%, GAIL’s debt level is
This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future.
GAIL seems to have put its debt to good use, generating operating cash levels of 2.72x 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.
For those seeking income streams from their portfolio, GAIL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.1%, making it one of the best dividend companies in the market.
For GAIL (India),
I’ve put together
- Future Outlook: What are well-informed industry analysts predicting for GAIL’s future growth? Take a look at our free research report of analyst consensus for GAIL’s outlook.
- Valuation: What is GAIL 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 GAIL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GAIL? 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 firstname.lastname@example.org.