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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 is a financially-robust , dividend-paying company with a an impressive history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on GAIL (India) here.
Excellent balance sheet established dividend payer
GAIL delivered a bottom-line expansion of 42% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did GAIL outperformed its past performance, its growth also exceeded the Gas Utilities industry expansion, which generated a 33% earnings growth. This is an optimistic signal for the future. With a debt-to-equity ratio of 7.7%, GAIL’s debt level is reasonable. This means that GAIL’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. GAIL appears to have made good use of debt, producing operating cash levels of 2.72x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
GAIL’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 2.1%.
For GAIL (India), I've put together three essential aspects you should look at:
- 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!
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 email@example.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.