Yahoo Finance Why The PAS Group Limited (ASX:PGR) Should Be Your Next Investment
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on The PAS Group Limited (ASX:PGR) due to its excellent fundamentals in more than one area. PGR is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on PAS Group here.
Flawless balance sheet and undervalued
PGR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that PGR manages its cash and cost levels well, which is a key determinant of the company’s health. PGR currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, 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. PGR’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 PGR’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the specialty retail industry, PGR is also trading below its peers, relative to earnings generated. This supports the theory that PGR is potentially underpriced.
Next Steps:
For PAS Group, there are three relevant factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for PGR’s future growth? Take a look at our free research report of analyst consensus for PGR’s outlook.
Historical Performance: What has PGR’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 PGR? 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.
