Want to participate in a short research study? Help shape the future of investing tools and receive a $60 prize!
I’ve been keeping an eye on PORR AG (VIE:POS) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe POS has a lot to offer. Basically, it is a financially-robust company with a a great 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, take a look at the report on PORR here.
Very undervalued with excellent balance sheet and pays a dividend
POS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. POS appears to have made good use of debt, producing operating cash levels of 0.27x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. POS’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 POS’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the construction industry, POS is also trading below its peers, relative to earnings generated. This supports the theory that POS is potentially underpriced.
For those seeking income streams from their portfolio, POS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 5.5%, making it one of the best dividend companies in the market.
Next Steps:
For PORR, I’ve put together three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for POS’s future growth? Take a look at our free research report of analyst consensus for POS’s outlook.
- Historical Performance: What has POS’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 POS? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.