Yahoo Finance Why Aggreko Plc (LON:AGK) Could Have A Place In Your Portfolio
I’ve been keeping an eye on Aggreko Plc (LON:AGK) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AGK has a lot to offer. Basically, it is a financially-healthy company with a an impressive track record high-quality dividend payments, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Aggreko here.
Established dividend payer and good value
AGK’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 indicates that AGK has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. AGK’s has produced operating cash levels of 0.39x total debt over the past year, which implies that AGK’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. AGK is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Compared to the rest of the commercial services industry, AGK is also trading below its peers, relative to earnings generated. This further reaffirms that AGK is potentially undervalued.
Income investors would also be happy to know that AGK is a great dividend company, with a current yield standing at 3.7%. AGK has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Aggreko, there are three pertinent factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for AGK’s future growth? Take a look at our free research report of analyst consensus for AGK’s outlook.
Historical Performance: What has AGK’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.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AGK? 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.
