PPDAI Group Inc. (NYSE:PPDF) 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 PPDF, it is a financially-healthy company with a an impressive history superior dividend payments, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on PPDAI Group here.
Excellent balance sheet, good value and pays a dividend
PPDF’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. PPDF seems to have put its debt to good use, generating operating cash levels of 75.4x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. PPDF’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if PPDF’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, PPDF’s share price is trading below the group’s average. This supports the theory that PPDF is potentially underpriced.
PPDF’s high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
For PPDAI Group, there are three essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for PPDF’s future growth? Take a look at our free research report of analyst consensus for PPDF’s outlook.
- Historical Performance: What has PPDF’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 PPDF? 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.