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An Examination Of The Mission Marketing Group plc (LON:TMMG)

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I've been keeping an eye on The Mission Marketing Group plc (LON:TMMG) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe TMMG has a lot to offer. Basically, it is a financially-healthy company with a an impressive history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Mission Marketing Group here.

Very undervalued with flawless balance sheet

Over the past year, TMMG has grown its earnings by 43%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, TMMG also outperformed its industry, which delivered a growth of 19%. This is what investors like to see! TMMG's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TMMG manages its cash and cost levels well, which is a crucial insight into the health of the company. TMMG's has produced operating cash levels of 0.66x total debt over the past year, which implies that TMMG's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

AIM:TMMG Income Statement, May 25th 2019
AIM:TMMG Income Statement, May 25th 2019

TMMG's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if TMMG's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, TMMG's share price is trading below the group's average. This bolsters the proposition that TMMG's price is currently discounted.

AIM:TMMG Intrinsic value, May 25th 2019
AIM:TMMG Intrinsic value, May 25th 2019

Next Steps:

For Mission Marketing Group, I've compiled three essential factors you should further examine:

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

  2. Dividend Income vs Capital Gains: Does TMMG 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 TMMG as an investment.

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

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