These Factors Make Metall Zug AG (VTX:METN) An Interesting Investment

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Attractive stocks have exceptional fundamentals. In the case of Metall Zug AG (VTX:METN), there’s is a company that has been able to sustain great financial health, trading at an attractive share price. 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 Metall Zug here.

Flawless balance sheet and undervalued

METN’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 crucial insight into the health of the company. METN appears to have made good use of debt, producing operating cash levels of 61.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. METN 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 METN’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the market, METN is also trading below other listed companies on the CH stock exchange, relative to earnings generated. This bolsters the proposition that METN’s price is currently discounted.

SWX:METN Price Estimation Relative to Market, June 26th 2019
SWX:METN Price Estimation Relative to Market, June 26th 2019

Next Steps:

For Metall Zug, I’ve compiled three essential aspects you should further examine:

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