A Holistic Look At Momentum Group AB (publ) (STO:MMGR B)

Momentum Group AB (publ) (STO:MMGR B) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of MMGR B, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Momentum Group here.

Excellent balance sheet and good value

MMGR B is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that MMGR B manages its cash and cost levels well, which is a key determinant of the company’s health. MMGR B seems to have put its debt to good use, generating operating cash levels of 0.85x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. MMGR B’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. 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 trade distributors industry, MMGR B is also trading below its peers, relative to earnings generated. This bolsters the proposition that MMGR B’s price is currently discounted.

OM:MMGR B Intrinsic value, August 6th 2019
OM:MMGR B Intrinsic value, August 6th 2019

Next Steps:

For Momentum Group, I’ve compiled three relevant aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for MMGR B’s future growth? Take a look at our free research report of analyst consensus for MMGR B’s outlook.
  2. Historical Performance: What has MMGR B’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.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MMGR B? 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.