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Why We Think Arvida Group Limited (NZSE:ARV) Could Be Worth Looking At

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Arvida Group Limited (NZSE:ARV) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ARV, it is a company with a a great track record of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Arvida Group here.

Undervalued with proven track record

Over the past year, ARV has grown its earnings by 51%, with its most recent figure exceeding its annual average over the past five years. Not only did ARV outperformed its past performance, its growth also surpassed the Healthcare industry expansion, which generated a -4.6% earnings growth. This is an notable feat for the company. ARV'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 ARV's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the healthcare industry, ARV is also trading below its peers, relative to earnings generated. This supports the theory that ARV is potentially underpriced.

NZSE:ARV Income Statement, April 8th 2019
NZSE:ARV Income Statement, April 8th 2019

Next Steps:

For Arvida Group, I've compiled three pertinent aspects you should further examine:

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

  2. Financial Health: Are ARV’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ARV? 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.