Why Fundamental Investors Might Love Atresmedia Corporación de Medios de Comunicación, S.A. (BME:A3M)

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I’ve been keeping an eye on Atresmedia Corporación de Medios de Comunicación, S.A. (BME:A3M) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe A3M has a lot to offer. Basically, it 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. If you’re interested in understanding beyond my broad commentary, take a look at the report on Atresmedia Corporación de Medios de Comunicación here.

Good value with adequate balance sheet

A3M is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that A3M has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. A3M seems to have put its debt to good use, generating operating cash levels of 0.71x 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. A3M is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. 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, A3M’s share price is trading below the group’s average. This further reaffirms that A3M is potentially undervalued.

BME:A3M Intrinsic Value Export February 13th 19
BME:A3M Intrinsic Value Export February 13th 19

Next Steps:

For Atresmedia Corporación de Medios de Comunicación, I’ve compiled three important aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for A3M’s future growth? Take a look at our free research report of analyst consensus for A3M’s outlook.
  2. Historical Performance: What has A3M’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 A3M? 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.