Attractive stocks have exceptional fundamentals. In the case of OPG Power Ventures Plc (LON:OPG), there’s 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. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on OPG Power Ventures here.
Very undervalued with adequate balance sheet
OPG’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 indicates that OPG has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. OPG seems to have put its debt to good use, generating operating cash levels of 0.77x 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. OPG’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if OPG’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, OPG’s share price is trading below the group’s average. This bolsters the proposition that OPG’s price is currently discounted.
Next Steps:
For OPG Power Ventures, there are three relevant aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for OPG’s future growth? Take a look at our free research report of analyst consensus for OPG’s outlook.
- Historical Performance: What has OPG’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OPG? 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.