Koninklijke Ahold Delhaize N.V. (AMS:AD): Commentary On Fundamentals

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I’ve been keeping an eye on Koninklijke Ahold Delhaize N.V. (AMS:AD) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AD has a lot to offer. Basically, it is a highly-regarded dividend-paying company that has been a rockstar for income investors, currently 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, read the full report on Koninklijke Ahold Delhaize here.

Undervalued established dividend payer

AD’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. 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, AD’s share price is trading below the group’s average. This bolsters the proposition that AD’s price is currently discounted.

ENXTAM:AD Intrinsic value, June 27th 2019
ENXTAM:AD Intrinsic value, June 27th 2019

For those seeking income streams from their portfolio, AD is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.6%.

ENXTAM:AD Historical Dividend Yield, June 27th 2019
ENXTAM:AD Historical Dividend Yield, June 27th 2019

Next Steps:

For Koninklijke Ahold Delhaize, I’ve put together three important aspects you should further research:

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