U.S. Markets close in 3 hrs 12 mins

A Look At Broad Gate S.A.'s (WSE:BDG) Exceptional Fundamentals

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Attractive stocks have exceptional fundamentals. In the case of Broad Gate S.A. (WSE:BDG), there's is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Broad Gate here.

Good value with adequate balance sheet

With a debt-to-equity ratio of 6.5%, BDG’s debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. BDG seems to have put its debt to good use, generating operating cash levels of 2.29x 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. BDG's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if BDG's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the market, BDG is also trading below other listed companies on the PL stock exchange, relative to earnings generated. This supports the theory that BDG is potentially underpriced.

WSE:BDG Price Estimation Relative to Market, May 18th 2019

Next Steps:

For Broad Gate, there are three important aspects you should look at:

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