OPG Power Ventures Plc (LON:OPG) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of OPG, it is a financially-robust company with a great history of performance, trading at a great value. Below is a brief commentary 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 OPG Power Ventures here.
Undervalued with solid track record
OPG delivered a bottom-line expansion of 57% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, OPG also outperformed its industry, which delivered a growth of -7.7%. This paints a buoyant picture for the company. OPG's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that OPG manages its cash and cost levels well, which is a crucial insight into the health of the company. OPG's has produced operating cash levels of 0.24x total debt over the past year, which implies that OPG's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
OPG's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of OPG's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, OPG's share price is trading below the group's average. This bolsters the proposition that OPG's price is currently discounted.
For OPG Power Ventures, I've put together three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for OPG’s future growth? Take a look at our free research report of analyst consensus for OPG’s outlook.
- Dividend Income vs Capital Gains: Does OPG return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from OPG as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OPG? 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.