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A Holistic Look At Asseco Poland SA. (WSE:ACP)

Brent Freeman

Asseco Poland SA. (WSE:ACP) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ACP, it is a financially-sound company with a an impressive history high-quality dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Asseco Poland here.

6 star dividend payer and undervalued

ACP’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that ACP manages its cash and cost levels well, which is a key determinant of the company’s health. ACP seems to have put its debt to good use, generating operating cash levels of 0.47x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. ACP’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 ACP’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, ACP’s share price is trading below the group’s average. This bolsters the proposition that ACP’s price is currently discounted.

WSE:ACP PE PEG Gauge Jun 15th 18
WSE:ACP PE PEG Gauge Jun 15th 18

Income investors would also be happy to know that ACP is one of the highest dividend payers in the market, with current dividend yield standing at 7.36%. ACP has also been regularly increasing its dividend payments to shareholders over the past decade.

WSE:ACP Historical Dividend Yield Jun 15th 18
WSE:ACP Historical Dividend Yield Jun 15th 18

Next Steps:

For Asseco Poland, I’ve put together three essential factors you should look at:

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

  2. Historical Performance: What has ACP’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.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ACP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.