Aedifica SA (EBR:AED): Commentary On Fundamentals

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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Aedifica SA (EBR:AED) due to its excellent fundamentals in more than one area. AED is a company with a a strong track record of dividend payments as well as a excellent growth outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Aedifica here.

Established dividend payer with reasonable growth potential

Investors in search for stocks with room to flourish should look no further than AED, with its expected earnings growth of 26%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 66% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives.

ENXTBR:AED Future Profit February 19th 19
ENXTBR:AED Future Profit February 19th 19

Income investors would also be happy to know that AED is a great dividend company, with a current yield standing at 3.0%. AED has also been regularly increasing its dividend payments to shareholders over the past decade.

ENXTBR:AED Historical Dividend Yield February 19th 19
ENXTBR:AED Historical Dividend Yield February 19th 19

Next Steps:

For Aedifica, I’ve put together three key factors you should further examine:

  1. Historical Performance: What has AED’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.

  2. Valuation: What is AED worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AED is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AED? 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. On rare occasion, data errors may occur. Thank you for reading.

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