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Should Klépierre SA (EPA:LI) Be Your Next Stock Pick?

Simply Wall St

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Klépierre SA (EPA:LI) due to its excellent fundamentals in more than one area. LI is a well-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Klépierre here.

6 star dividend payer and undervalued

LI is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of LI'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, LI's share price is trading below the group's average. This further reaffirms that LI is potentially undervalued.

ENXTPA:LI Intrinsic value, June 26th 2019

Income investors would also be happy to know that LI is one of the highest dividend payers in the market, with current dividend yield standing at 7.2%. LI has also been regularly increasing its dividend payments to shareholders over the past decade.

ENXTPA:LI Historical Dividend Yield, June 26th 2019

Next Steps:

For Klépierre, I've put together three important aspects you should further research:

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