Stock Analysis

These Factors Make IREIT Global (SGX:UD1U) An Interesting Investment

SGX:UD1U
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I've been keeping an eye on IREIT Global (SGX:UD1U) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe UD1U has a lot to offer. Basically, it is a company with a a great 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 understanding where the figures come from and want to see the analysis, take a look at the report on IREIT Global here.

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Solid track record and good value

In the previous year, UD1U has ramped up its bottom line by 93%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, UD1U also outperformed its industry, which delivered a growth of 10%. This is an optimistic signal for the future. UD1U'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 UD1U's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the reits industry, UD1U is also trading below its peers, relative to earnings generated. This supports the theory that UD1U is potentially underpriced.

SGX:UD1U Income Statement, March 15th 2019
SGX:UD1U Income Statement, March 15th 2019

Next Steps:

For IREIT Global, I've compiled three pertinent aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for UD1U’s future growth? Take a look at our free research report of analyst consensus for UD1U’s outlook.
  2. Financial Health: Are UD1U’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UD1U? 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.

About SGX:UD1U

IREIT Global

IREIT Global (SGX-UD1U) which was listed on 13 August 2014, is the first Singapore-listed real estate investment trust with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe which is or will be primarily used for office, retail, industrial (including logistics and business parks), hospitality, hospitality-related and other accommodation and/or lodging purposes, as well as real estate-related assets.

Average dividend payer with moderate growth potential.

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