Yahoo Finance Why Petards Group plc (LON:PEG) Is An Attractive Investment
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Petards Group plc (LON:PEG), it is a financially-sound company with a a strong history of performance, trading at a discount. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Petards Group here.
Flawless balance sheet and good value
Over the past year, PEG has grown its earnings by 35.93%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, PEG also outperformed its industry, which delivered a growth of 19.42%. This is an notable feat for the company. PEG’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that PEG has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. PEG’s has produced operating cash levels of 14.18x total debt over the past year, which implies that PEG’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
PEG’s shares are now trading at a price below its true value based on its PE ratio of 6.72x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.
Next Steps:
For Petards Group, I’ve compiled three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for PEG’s future growth? Take a look at our free research report of analyst consensus for PEG’s outlook.
Dividend Income vs Capital Gains: Does PEG return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from PEG as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PEG? 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 pass 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.
