Why Tidewater Midstream and Infrastructure Ltd (TSE:TWM) Could Be Your Next Investment

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Tidewater Midstream and Infrastructure Ltd (TSE:TWM) due to its excellent fundamentals in more than one area. TWM is a company with a excellent future outlook, which has not yet been priced into the stock. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Tidewater Midstream and Infrastructure here.

Good value with reasonable growth potential

TWM 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 TWM’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the oil and gas industry, TWM is also trading below its peers of similar sizes in terms of their assets. This supports the theory that TWM is potentially underpriced.

TSX:TWM Future Profit July 26th 18
TSX:TWM Future Profit July 26th 18

Next Steps:

For Tidewater Midstream and Infrastructure, there are three pertinent factors you should look at:

  1. Historical Performance: What has TWM’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.
  2. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TWM? 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.