An Examination Of Public Joint Stock Company Multisistema (MCX:MSST)

Attractive stocks have exceptional fundamentals. In the case of Public Joint Stock Company Multisistema (MCX:MSST), there’s is a financially-robust company with a a great history of performance, trading at a great value. 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 Multisistema here.

Undervalued with excellent balance sheet

MSST delivered a satisfying double-digit returns of 78% in the most recent year Unsurprisingly, MSST surpassed the Commercial Services industry return of 11%, which gives us more confidence of the company’s capacity to drive earnings going forward. MSST’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 a key determinant of the company’s health. MSST seems to have put its debt to good use, generating operating cash levels of 1.87x 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.

MISX:MSST Income Statement, March 20th 2019
MISX:MSST Income Statement, March 20th 2019

MSST’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 MSST’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, MSST’s share price is trading below the group’s average. This bolsters the proposition that MSST’s price is currently discounted.

MISX:MSST Price Estimation Relative to Market, March 20th 2019
MISX:MSST Price Estimation Relative to Market, March 20th 2019

Next Steps:

For Multisistema, I’ve compiled three fundamental aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for MSST’s future growth? Take a look at our free research report of analyst consensus for MSST’s outlook.
  2. Dividend Income vs Capital Gains: Does MSST 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 MSST as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MSST? 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.