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A Look At Elegant Hotels Group Plc's (LON:EHG) Exceptional Fundamentals

I've been keeping an eye on Elegant Hotels Group Plc (LON:EHG) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EHG has a lot to offer. Basically, it is a company with a great history of performance, trading at a discount. Below is a brief commentary 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 Elegant Hotels Group here.

Undervalued with proven track record

EHG delivered a bottom-line expansion of 42% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, EHG also outperformed its industry, which delivered a growth of 3.5%. This paints a buoyant picture for the company. EHG is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if EHG's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the hospitality industry, EHG is also trading below its peers, relative to earnings generated. This further reaffirms that EHG is potentially undervalued.

AIM:EHG Income Statement, August 28th 2019
AIM:EHG Income Statement, August 28th 2019

Next Steps:

For Elegant Hotels Group, I've compiled three pertinent aspects you should further research:

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

  2. Financial Health: Are EHG’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

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