Yahoo Finance TUI AG (ETR:TUI1) Has Attractive Fundamentals
TUI AG (ETR:TUI1) 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 TUI1, it is a financially-robust company with a great history high-quality dividend payments, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, read the full report on TUI here.
Very undervalued with excellent balance sheet and pays a dividend
TUI1’s debt-to-equity ratio stands at 40%, which means its debt level is reasonable. This means that TUI1’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. TUI1 appears to have made good use of debt, producing operating cash levels of 0.44x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. TUI1 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of TUI1's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the consumer services industry, TUI1 is also trading below its peers, relative to earnings generated. This bolsters the proposition that TUI1's price is currently discounted.
TUI1 is considered one of the top dividend payers in 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 TUI, there are three relevant factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for TUI1’s future growth? Take a look at our free research report of analyst consensus for TUI1’s outlook.
Historical Performance: What has TUI1'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 TUI1? 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 editorial-team@simplywallst.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.
