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A Holistic Look At Profire Energy Inc (NASDAQ:PFIE)

I’ve been keeping an eye on Profire Energy Inc (NASDAQ:PFIE) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe PFIE has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Profire Energy here.

Flawless balance sheet and undervalued

PFIE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that PFIE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Investors should not worry about PFIE’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future. PFIE 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. Compared to the rest of the energy services industry, PFIE is also trading below its peers, relative to earnings generated. This further reaffirms that PFIE is potentially undervalued.

NasdaqCM:PFIE PE PEG Gauge November 28th 18
NasdaqCM:PFIE PE PEG Gauge November 28th 18

Next Steps:

For Profire Energy, I’ve compiled three relevant factors you should look at:

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

  2. Historical Performance: What has PFIE’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 PFIE? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.