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Is Trinseo S.A. (NYSE:TSE) Potentially Underrated?

Trinseo S.A. (NYSE:TSE) 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 TSE, it is a dependable dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more 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 Trinseo here.

Adequate balance sheet average dividend payer

TSE'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 crucial insight into the health of the company. TSE's has produced operating cash levels of 0.37x total debt over the past year, which implies that TSE's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:TSE Historical Debt, August 12th 2019
NYSE:TSE Historical Debt, August 12th 2019

TSE's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

NYSE:TSE Historical Dividend Yield, August 12th 2019
NYSE:TSE Historical Dividend Yield, August 12th 2019

Next Steps:

For Trinseo, there are three key factors you should look at:

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

  2. Historical Performance: What has TSE'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 TSE? 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 editorial-team@simplywallst.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.