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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS) due to its excellent fundamentals in more than one area. ATS is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on AT & S Austria Technologie & Systemtechnik here.
Undervalued with excellent balance sheet
ATS’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. ATS’s has produced operating cash levels of 0.24x total debt over the past year, which implies that ATS’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. ATS’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 ATS’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the electronic industry, ATS is also trading below its peers, relative to earnings generated. This bolsters the proposition that ATS’s price is currently discounted.
For AT & S Austria Technologie & Systemtechnik, I’ve compiled three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ATS’s future growth? Take a look at our free research report of analyst consensus for ATS’s outlook.
- Historical Performance: What has ATS’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 ATS? 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 email@example.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.