Should You Be Holding HORNBACH Baumarkt AG (FRA:HBM)?

HORNBACH Baumarkt AG (FRA:HBM) 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 HBM, it is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on HORNBACH Baumarkt here.

Excellent balance sheet established dividend payer

HBM’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that HBM has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. HBM seems to have put its debt to good use, generating operating cash levels of 0.32x 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.

DB:HBM Historical Debt June 22nd 18

Income investors would also be happy to know that HBM is a great dividend company, with a current yield standing at 2.46%. HBM has also been regularly increasing its dividend payments to shareholders over the past decade.

DB:HBM Historical Dividend Yield June 22nd 18

Next Steps:

For HORNBACH Baumarkt, I’ve put together three pertinent aspects you should further examine:

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

2. Historical Performance: What has HBM’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

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