Broad Gate S.A. (WSE:BDG) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of BDG, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more 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 Broad Gate here.
Undervalued with adequate balance sheet
With a debt-to-equity ratio of 5.2%, BDG’s debt level is acceptable. This implies that BDG has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. BDG’s has produced operating cash levels of 2.37x total debt over the past year, which implies that BDG’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. BDG’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. 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. Also, relative to the rest of its peers with similar levels of earnings, BDG’s share price is trading below the group’s average. This bolsters the proposition that BDG’s price is currently discounted.
For Broad Gate, I’ve put together three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for BDG’s future growth? Take a look at our free research report of analyst consensus for BDG’s outlook.
- Historical Performance: What has BDG’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 BDG? 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 firstname.lastname@example.org. 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.