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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Greenhill & Co., Inc. (NYSE:GHL) due to its excellent fundamentals in more than one area. GHL is a company with an optimistic growth outlook, which has not yet been priced into the stock. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Greenhill here.
Good value with reasonable growth potential
Investors in search for stocks with room to flourish should look no further than GHL, with its expected earnings growth of 34% underlying the notable 52% return on equity over the next few years leading up to 2022. GHL 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, GHL's share price is trading below the group's average. This further reaffirms that GHL is potentially undervalued.
For Greenhill, I've put together three pertinent factors you should further examine:
- Historical Performance: What has GHL'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.
- 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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GHL? 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.