OPG Power Ventures Plc (LON:OPG): Commentary On Fundamentals

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

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, I’ve touched on some key aspects you should know on a high level. 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 crucial insight into the health of the company. OPG appears to have made good use of debt, producing operating cash levels of 0.77x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. OPG is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of OPG’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. 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 further reaffirms that OPG is potentially undervalued.

AIM:OPG Price Estimation Relative to Market, June 13th 2019
AIM:OPG Price Estimation Relative to Market, June 13th 2019

Next Steps:

For OPG Power Ventures, I’ve put together three essential factors you should further examine:

  1. 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.
  2. 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.
  3. 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!

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.