Motor Oil (Hellas) Corinth Refineries S.A. (ATH:MOH) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of MOH, it is a financially-sound company with a an impressive history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Motor Oil (Hellas) Corinth Refineries here.
Excellent balance sheet established dividend payer
Over the past few years, MOH has demonstrated a proven ability to generate robust returns of 30% Unsurprisingly, MOH surpassed the Oil and Gas industry return of 13%, which gives us more confidence of the company’s capacity to drive earnings going forward. MOH’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MOH’s has produced operating cash levels of 0.27x total debt over the past year, which implies that MOH’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
MOH’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of MOH’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, MOH’s share price is trading below the group’s average. This bolsters the proposition that MOH’s price is currently discounted.
Next Steps:
For Motor Oil (Hellas) Corinth Refineries, I’ve put together three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MOH’s future growth? Take a look at our free research report of analyst consensus for MOH’s outlook.
- Dividend Income vs Capital Gains: Does MOH 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 MOH as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MOH? 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.