Is Azimut Holding SpA (BIT:AZM) Potentially Underrated?

In this article:

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Azimut Holding SpA (BIT:AZM), it is a notable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Azimut Holding here.

Good value average dividend payer

AZM’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Compared to the rest of the capital markets industry, AZM is also trading below its peers, relative to earnings generated. This bolsters the proposition that AZM’s price is currently discounted.

BIT:AZM Intrinsic Value Export October 10th 18
BIT:AZM Intrinsic Value Export October 10th 18

Income investors would also be happy to know that AZM is one of the highest dividend payers in the market, with current dividend yield standing at 7.9%. AZM has also been regularly increasing its dividend payments to shareholders over the past decade.

BIT:AZM Historical Dividend Yield October 10th 18
BIT:AZM Historical Dividend Yield October 10th 18

Next Steps:

For Azimut Holding, I’ve compiled three relevant aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for AZM’s future growth? Take a look at our free research report of analyst consensus for AZM’s outlook.

  2. Historical Performance: What has AZM’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.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AZM? 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.

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