How Norwegian Finans Holding ASA (OB:NOFI) Can Add Value To Your Portfolio

Simply Wall St June 13, 2018
I’ve been keeping an eye on Norwegian Finans Holding ASA (OB:NOFI) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe NOFI has a lot to offer. Basically, it is a financially-healthy company with a an impressive track record of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Norwegian Finans Holding here.

Outstanding track record and good value

In the previous year, NOFI has ramped up its bottom line by 50.16%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 27.24% return to shareholders, which is an optimistic signal for the future.

OB:NOFI Income Statement June 13th 18
OB:NOFI Income Statement June 13th 18

NOFI’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. 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 NO companies with similar levels of earnings, NOFI’s share price is trading below the group’s average. This bolsters the proposition that NOFI’s price is currently discounted.

OB:NOFI Intrinsic Value June 13th 18
OB:NOFI Intrinsic Value June 13th 18

Next Steps:

For Norwegian Finans Holding, I’ve put together three key aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for NOFI’s future growth? Take a look at our free research report of analyst consensus for NOFI’s outlook.
  2. Dividend Income vs Capital Gains: Does NOFI 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 NOFI as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NOFI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!