I’ve been keeping an eye on Rice Midstream Partners LP (NYSE:RMP) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe RMP has a lot to offer. Basically, it is a financially-robust company with a an impressive history superior dividend payments, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Rice Midstream Partners here.
Undervalued with adequate balance sheet and pays a dividend
RMP’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that RMP has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. RMP appears to have made good use of debt, producing operating cash levels of 0.58x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. RMP 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 RMP’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, RMP’s share price is trading below the group’s average. This bolsters the proposition that RMP’s price is currently discounted.
RMP is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.
For Rice Midstream Partners, I’ve put together three important aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for RMP’s future growth? Take a look at our free research report of analyst consensus for RMP’s outlook.
- Historical Performance: What has RMP’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RMP? 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 pass 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.