Is Paul Hartmann AG (DB:PHH2) Potentially Underrated?

I’ve been keeping an eye on Paul Hartmann AG (DB:PHH2) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe PHH2 has a lot to offer. Basically, it is a financially-robust company with a an impressive track record high-quality dividend payments, trading at a great value. 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, read the full report on Paul Hartmann here.

Flawless balance sheet, good value and pays a dividend

PHH2 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that PHH2 manages its cash and cost levels well, which is a key determinant of the company’s health. PHH2 seems to have put its debt to good use, generating operating cash levels of 5.24x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. PHH2’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, PHH2’s share price is trading below the group’s average. This supports the theory that PHH2 is potentially underpriced.

DB:PHH2 Intrinsic Value June 15th 18
DB:PHH2 Intrinsic Value June 15th 18

For those seeking income streams from their portfolio, PHH2 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.10%.

DB:PHH2 Historical Dividend Yield June 15th 18
DB:PHH2 Historical Dividend Yield June 15th 18

Next Steps:

For Paul Hartmann, I’ve compiled three key factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for PHH2’s future growth? Take a look at our free research report of analyst consensus for PHH2’s outlook.
  2. Historical Performance: What has PHH2’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 PHH2? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!