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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Keane Group, Inc. (NYSE:FRAC) due to its excellent fundamentals in more than one area. FRAC is a company with a great history of performance, trading at a discount. 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, take a look at the report on Keane Group here.
Undervalued with solid track record
Over the past year, FRAC has grown its earnings by 64%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, FRAC also outperformed its industry, which delivered a growth of 1.0%. This is an notable feat for the company. FRAC's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of FRAC's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the energy services industry, FRAC is also trading below its peers, relative to earnings generated. This supports the theory that FRAC is potentially underpriced.
For Keane Group, I've put together three essential factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for FRAC’s future growth? Take a look at our free research report of analyst consensus for FRAC’s outlook.
- Financial Health: Are FRAC’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FRAC? 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.