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August Fundamental Stock Pick: Cairo Communication SpA (BIT:CAI)

Matthew Smith

Cairo Communication SpA (BIT:CAI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CAI, it is a company with a a great history of performance, trading at a great value. 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, read the full report on Cairo Communication here.

Very undervalued with solid track record

CAI delivered a bottom-line expansion of 65.4% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did CAI outperformed its past performance, its growth also exceeded the Media industry expansion, which generated a 20.8% earnings growth. This is an optimistic signal for the future. CAI is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of CAI’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, CAI’s share price is trading below the group’s average. This supports the theory that CAI is potentially underpriced.

BIT:CAI Income Statement Export August 27th 18

Next Steps:

For Cairo Communication, there are three fundamental factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for CAI’s future growth? Take a look at our free research report of analyst consensus for CAI’s outlook.
  2. Financial Health: Are CAI’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 CAI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.