Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Ausdrill Limited (ASX:ASL) due to its excellent fundamentals in more than one area. ASL is a company with a great track record of performance, 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, take a look at the report on Ausdrill here.
Undervalued with proven track record
Over the past few years, ASL has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, ASL also outperformed its industry, which delivered a growth of 20%. This is an notable feat for the company. ASL's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. 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 metals and mining industry, ASL is also trading below its peers, relative to earnings generated. This further reaffirms that ASL is potentially undervalued.
For Ausdrill, I've put together three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ASL’s future growth? Take a look at our free research report of analyst consensus for ASL’s outlook.
- Financial Health: Are ASL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ASL? 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 email@example.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.