Even though Robert Walters (LSE: RWA) continues to go from strength to strength in international climes, market-makers still remain less-than compelled by the stock's earnings picture.
Sure, its share price may have risen 50% over the course of the past 12 months. But a forward P/E ratio of 14.9 times, below the accepted benchmark of 15 times which indicates great value for money, suggests that the FTSE 250 firm remains undervalued by the market.
The specialist recruiter underlined its impressive momentum when it advised in April that net fee income jumped 17% at constant currencies between January and March, to £88.5m. While income rose 6% in the UK, rises of 11% in Asia Pacific and 32% in Europe put this respectable increase into the shade.
Robert Walters has seen earnings surge by double-digit percentages in previous years but, reflecting the stresses in its home marketplace as the economy slows, City boffins are expecting growth to cool to 4% this year before accelerating again next year -- an 8% rise is predicted for 2019.
Dividends have grown by 123% over the past five years and the Square Mile expects payouts to keep expanding, albeit at a slower pace than previously. Last year's 12.05p per share reward is predicted to step to 13.8p in the present period and again to 15.3p the following year.
These figures may be handy rather than spectacular, the projections yielding 2.1% and 2.3% respectively. However, Robert Walters' brilliant progress in abroad makes it a great bet for those seeking strong and sustained dividend increases year after year.
Open the door to terrific returns
Unlike Robert Walters, Tyman(LSE: TYMN) has endured a much more tumultuous time in 2018 (or since the autumn, in fact) as it has suffered a combination of rising costs and flagging performance on the other side of the Atlantic.
And the door and window parts manufacturer flagged up some of these problems again this month, advising that "input costs, particularly for metals, remain volatile."
However, there was still plenty to cheer in the latest trading release. Acquisition activity has seen it build a robust foothold in North America and, with the business noting that these markets "continue to expand," sales at the AmesburyTruth division have risen since the start of the year. And what's more, its SchlegelGiesse arm has experienced an uptick in its order book from Europe, Middle East, Africa and India (EMEAI) countries, it said.
City analysts are thus predicting further earnings growth in the near-term -- rises of 2% and 11% are forecast for this year and next -- and this feeds into expectations of more dividend progression as well.
The company has almost doubled the annual payout during the last half-decade, and it is expected to raise the dividend to 11.8p per share from 11.25p in 2017, and again to 12.7p in 2019.
These figures yield a chubby 3.6% and 3.9% respectively. When you throw an ultra-low forward P/E multiple of 12 times into the bargain, I reckon Tyman provides plenty of bang for your buck.
Our top analysts have highlighted five shares in the FTSE 100 in our special free report "5 Shares To Retire On". To find out the names of the shares and the reasons behind their inclusion, simply click here to view it immediately with no obligations whatsoever!
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.