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Micro Focus International plc (LON:MCRO): The Best Of Both Worlds

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Micro Focus International plc (LON:MCRO), it is a dependable dividend-paying company that has been a rockstar for income investors, currently 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 high-level commentary, take a look at the report on Micro Focus International here.

6 star dividend payer and undervalued

MCRO’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. 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 software industry, MCRO is also trading below its peers, relative to earnings generated. This bolsters the proposition that MCRO’s price is currently discounted.

LSE:MCRO Intrinsic Value Export October 10th 18

Income investors would also be happy to know that MCRO is one of the highest dividend payers in the market, with current dividend yield standing at 6.7%. MCRO has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:MCRO Historical Dividend Yield October 10th 18

Next Steps:

For Micro Focus International, I’ve compiled three important factors you should further examine:

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