Cogelec SA (EPA:COGEC): The Best Of Both Worlds

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Cogelec SA (EPA:COGEC) due to its excellent fundamentals in more than one area. COGEC is a financially-healthy company with a a excellent future outlook, not yet priced into the stock. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Cogelec here.

High growth potential and good value

COGEC’s shares are now trading at a price below its true value based on its PE ratio of 1.43x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.

ENXTPA:COGEC Future Profit August 27th 18
ENXTPA:COGEC Future Profit August 27th 18

COGEC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that COGEC manages its cash and cost levels well, which is an important determinant of the company’s health. COGEC’s has produced operating cash levels of 0.52x total debt over the past year, which implies that COGEC’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

ENXTPA:COGEC Historical Debt August 27th 18
ENXTPA:COGEC Historical Debt August 27th 18

Next Steps:

For Cogelec, there are three relevant aspects you should further examine:

  1. Historical Performance: What has COGEC’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. Dividend Income vs Capital Gains: Does COGEC return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from COGEC as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of COGEC? 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.