Yahoo Finance Metro Performance Glass Limited (NZSE:MPG): Commentary On Fundamentals
Metro Performance Glass Limited (NZSE:MPG) 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 MPG, it is a financially-sound company with a a strong history superior dividend payments, trading at a discount. 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 Metro Performance Glass here.
Undervalued with adequate balance sheet and pays a dividend
MPG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MPG seems to have put its debt to good use, generating operating cash levels of 0.36x 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. MPG’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. Compared to the rest of the building industry, MPG is also trading below its peers, relative to earnings generated. This bolsters the proposition that MPG’s price is currently discounted.
MPG’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.
Next Steps:
For Metro Performance Glass, I’ve put together three fundamental aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for MPG’s future growth? Take a look at our free research report of analyst consensus for MPG’s outlook.
Historical Performance: What has MPG’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 MPG? 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.
