Is Aegean Airlines S.A. (ATH:AEGN) Potentially Underrated?
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I've been keeping an eye on Aegean Airlines S.A. (ATH:AEGN) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AEGN has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Aegean Airlines here.
Flawless balance sheet with proven track record and pays a dividend
Over the past year, AEGN has grown its earnings by 13%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 24% return to shareholders, which is an optimistic signal for the future. AEGN'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 a crucial insight into the health of the company. AEGN seems to have put its debt to good use, generating operating cash levels of 3.77x 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.
AEGN 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 Aegean Airlines, there are three key aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for AEGN’s future growth? Take a look at our free research report of analyst consensus for AEGN’s outlook.
Valuation: What is AEGN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AEGN is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AEGN? 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.
