Why Fundamental Investors Might Love Signet Jewelers Limited (NYSE:SIG)

I’ve been keeping an eye on Signet Jewelers Limited (NYSE:SIG) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SIG has a lot to offer. Basically, it is a notable dividend payer 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 Signet Jewelers here.

Excellent balance sheet average dividend payer

SIG’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. SIG seems to have put its debt to good use, generating operating cash levels of 2.53x 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.

NYSE:SIG Historical Debt December 6th 18

SIG rewards its shareholders with attractive dividend yield, exceeding the low-risk savings rate, which is what investors expect when they take on the risk of investing in the stock market.

NYSE:SIG Historical Dividend Yield December 6th 18

Next Steps:

For Signet Jewelers, I’ve put together three important aspects you should look at:

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

2. Historical Performance: What has SIG’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 SIG? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.