As an investor, I look for investments which do 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 Deutsche Rohstoff AG (ETR:DR0), it has a great track record of performance and a buoyant future 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, read the full report on Deutsche Rohstoff here.
Good value with reasonable growth potential and pays a dividend
Over the past few years, DR0 has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did DR0 outperformed its past performance, its growth also exceeded the Oil and Gas industry expansion, which generated a 37% earnings growth. This paints a buoyant picture for the company.
DR0's shares are now trading at a price below its true value based on its PE ratio of 4.82x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.
For Deutsche Rohstoff, I've put together three fundamental factors you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Dividend Income vs Capital Gains: Does DR0 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 DR0 as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DR0? 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.