Why The New Zealand Refining Company Limited (NZSE:NZR) Could Have A Place In Your Portfolio

Attractive stocks have exceptional fundamentals. In the case of The New Zealand Refining Company Limited (NZSE:NZR), there’s is a company with a excellent future outlook, which has not yet been factored into the price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on New Zealand Refining here.

Good value with reasonable growth potential

NZR 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 NZR’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of NZR’s peers, it is also trading at a value below those of similar sizes in asset terms. This bolsters the proposition that NZR’s price is currently discounted.

NZSE:NZR Future Profit September 5th 18

Next Steps:

For New Zealand Refining, I’ve put together three relevant factors you should look at:

1. Historical Performance: What has NZR’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.

2. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

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