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Looking At Avation PLC (LON:AVAP) From All Angles

Simply Wall St

Avation PLC (LON:AVAP) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AVAP, it is a notable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Avation here.

Undervalued average dividend payer

AVAP is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if AVAP's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, AVAP's share price is trading below the group's average. This further reaffirms that AVAP is potentially undervalued.

LSE:AVAP Price Estimation Relative to Market, October 13th 2019

Income investors would also be happy to know that AVAP is a great dividend company, with a current yield standing at 2.9%. AVAP has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:AVAP Historical Dividend Yield, October 13th 2019

Next Steps:

For Avation, I've compiled three relevant aspects you should further examine:

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