These Factors Make NetComm Wireless Limited (ASX:NTC) An Interesting Investment

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on NetComm Wireless Limited (ASX:NTC) due to its excellent fundamentals in more than one area. NTC is a company that has been able to sustain great financial health, trading at an attractive share 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, take a look at the report on NetComm Wireless here.

Very undervalued with flawless balance sheet

NTC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that NTC has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. NTC currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise. NTC’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. Also, relative to the rest of its peers with similar levels of earnings, NTC’s share price is trading below the group’s average. This bolsters the proposition that NTC’s price is currently discounted.

ASX:NTC PE PEG Gauge November 27th 18

Next Steps:

For NetComm Wireless, I’ve put together three relevant aspects you should look at:

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

2. Historical Performance: What has NTC’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 NTC? 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.