As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of PFB Corporation (TSE:PFB), it is a financially-robust company with a a great track record high-grade dividend payments, trading at a discount. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on PFB here.
Flawless balance sheet, undervalued and pays a dividend
PFB is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that PFB has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. PFB appears to have made good use of debt, producing operating cash levels of 0.79x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. PFB is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if PFB’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the building industry, PFB is also trading below its peers, relative to earnings generated. This bolsters the proposition that PFB’s price is currently discounted.
Income investors would also be happy to know that PFB is a great dividend company, with a current yield standing at 3.2%. PFB has also been regularly increasing its dividend payments to shareholders over the past decade.
For PFB, I’ve compiled three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for PFB’s future growth? Take a look at our free research report of analyst consensus for PFB’s outlook.
- Historical Performance: What has PFB’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 PFB? 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 email@example.com.