Why Givaudan SA (VTX:GIVN) Is An Attractive Investment

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Givaudan SA (SWX:GIVN), it is a financially-sound , dividend-paying company with a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Givaudan here.

Excellent balance sheet with proven track record and pays a dividend

GIVN has a strong track record of performance. In the previous year, GIVN delivered an impressive double-digit return of 20.35% Unsurprisingly, GIVN surpassed the Chemicals industry return of 13.93%, which gives us more confidence of the company’s capacity to drive earnings going forward. GIVN’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 a key determinant of the company’s health. GIVN’s has produced operating cash levels of 0.54x total debt over the past year, which implies that GIVN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

GIVN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

Next Steps:

For Givaudan, there are three important factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for GIVN’s future growth? Take a look at our free research report of analyst consensus for GIVN’s outlook.

2. Valuation: What is GIVN 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 GIVN is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GIVN? 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 pass 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.