Derichebourg (EPA:DBG) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of DBG, it is a financially-sound company with a strong history high-quality dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Derichebourg here.
Very undervalued with excellent balance sheet and pays a dividend
DBG’s debt-to-equity ratio stands at 28%, which means its debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. DBG appears to have made good use of debt, producing operating cash levels of 1.4x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. DBG is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. 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. Also, relative to the rest of its peers with similar levels of earnings, DBG's share price is trading below the group's average. This further reaffirms that DBG is potentially undervalued.
DBG is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Derichebourg, there are three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for DBG’s future growth? Take a look at our free research report of analyst consensus for DBG’s outlook.
- Historical Performance: What has DBG'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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DBG? 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.
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