Attractive stocks have exceptional fundamentals. In the case of Tassal Group Limited (ASX:TGR), there’s is a financially-sound company with a a strong track record high-quality dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Tassal Group here.
Flawless balance sheet, good value and pays a dividend
TGR’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. TGR appears to have made good use of debt, producing operating cash levels of 0.33x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. TGR’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if TGR’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, TGR’s share price is trading below the group’s average. This supports the theory that TGR is potentially underpriced.
Income investors would also be happy to know that TGR is a great dividend company, with a current yield standing at 3.6%. TGR has also been regularly increasing its dividend payments to shareholders over the past decade.
For Tassal Group, there are three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for TGR’s future growth? Take a look at our free research report of analyst consensus for TGR’s outlook.
- Historical Performance: What has TGR’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 TGR? 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 firstname.lastname@example.org.