Attractive stocks have exceptional fundamentals. In the case of FTS International, Inc. (NYSE:FTSI), there's is a company with a excellent future outlook, which has not yet been factored into the price. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on FTS International here.
Good value with reasonable growth potential
One reason why investors are attracted to FTSI is its earnings growth potential in the near future of 28% underlying the notable 68% return on equity over the next few years leading up to 2022. FTSI'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 energy services industry, FTSI is also trading below its peers, relative to earnings generated. This supports the theory that FTSI is potentially underpriced.
For FTS International, I've compiled three fundamental aspects you should further examine:
- Historical Performance: What has FTSI'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.
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FTSI? 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 firstname.lastname@example.org. 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.