Yahoo Finance Should You Be Holding Infosys Limited (NSE:INFY)?
Infosys Limited (NSEI:INFY) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of INFY, it is a financially-robust , dividend-paying company with a a strong history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Infosys here.
Flawless balance sheet with solid track record and pays a dividend
In the previous year, INFY has ramped up its bottom line by 16.17%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 24.96%, which is an notable feat for the company. INFY is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that INFY has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Investors should not worry about INFY’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is rather impressive for a ₹2.77T market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
INFY’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 2.61%.
Next Steps:
For Infosys, I’ve compiled three relevant factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for INFY’s future growth? Take a look at our free research report of analyst consensus for INFY’s outlook.
Valuation: What is INFY 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 INFY is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of INFY? 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.
