Should You Be Holding Hutter & Schrantz Stahlbau AG (VIE:HST)?

I’ve been keeping an eye on Hutter & Schrantz Stahlbau AG (VIE:HST) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe HST has a lot to offer. Basically, 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 digger a bit deeper into my commentary, take a look at the report on Hutter & Schrantz Stahlbau here.

Undervalued with excellent balance sheet

HST’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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. HST appears to have made good use of debt, producing operating cash levels of 0.52x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. HST’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of HST’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the construction industry, HST is also trading below its peers, relative to earnings generated. This bolsters the proposition that HST’s price is currently discounted.

WBAG:HST Price Estimation Relative to Market, March 19th 2019
WBAG:HST Price Estimation Relative to Market, March 19th 2019

Next Steps:

For Hutter & Schrantz Stahlbau, I’ve put together three key aspects you should further examine:

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