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I’ve been keeping an eye on Tutor Perini Corporation (NYSE:TPC) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe TPC has a lot to offer. Basically, it is a financially-healthy company with a an optimistic growth outlook, not yet reflected in the share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Tutor Perini here.
Very undervalued with reasonable growth potential
TPC’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 TPC’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, TPC’s share price is trading below the group’s average. This supports the theory that TPC is potentially underpriced.
TPC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that TPC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. TPC’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps TPC expand.
For Tutor Perini, there are three pertinent factors you should further examine:
- Historical Performance: What has TPC’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.
- Dividend Income vs Capital Gains: Does TPC 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 TPC as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TPC? 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 firstname.lastname@example.org. 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.