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Is ASA International Group PLC (LON:ASAI) Potentially Underrated?

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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on ASA International Group PLC (LON:ASAI) due to its excellent fundamentals in more than one area. ASAI is a company with a excellent future outlook, which has not yet been priced into the stock. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on ASA International Group here.

Exceptional growth potential and good value

Investors in search for stocks with room to flourish should look no further than ASAI, with its expected earnings growth of 24% underlying the notable 41% return on equity over the next few years leading up to 2022. ASAI’s share price is trading below its true value according to its price-to-earnings ratio of 0.86x compared to its industry as well as the wider stock market, which means it is relatively cheaper than its peers.

LSE:ASAI Past and Future Earnings, February 21st 2019
LSE:ASAI Past and Future Earnings, February 21st 2019

Next Steps:

For ASA International Group, I’ve compiled three relevant factors you should further research:

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  1. Historical Performance: What has ASAI’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.

  2. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

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