Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Medical Properties Trust, Inc. (NYSE:MPW) due to its excellent fundamentals in more than one area. MPW is a dependable dividend-paying company with a great track record of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Medical Properties Trust here.
Outstanding track record, undervalued and pays a dividend
In the past couple of years, MPW has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 21%, which is an optimistic signal for the future. MPW’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of MPW’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the reits industry, MPW is also trading below its peers, relative to earnings generated. This bolsters the proposition that MPW’s price is currently discounted.
MPW is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.
For Medical Properties Trust, I’ve put together three key factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for MPW’s future growth? Take a look at our free research report of analyst consensus for MPW’s outlook.
- Financial Health: Are MPW’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MPW? 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.