Should You Consider Allianz SE (FRA:ALV)?

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Allianz SE (FRA:ALV), there's is a well-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Allianz here.

6 star dividend payer and good value

ALV'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 insurance industry, ALV is also trading below its peers, relative to earnings generated. This further reaffirms that ALV is potentially undervalued.

DB:ALV Intrinsic value, July 22nd 2019
DB:ALV Intrinsic value, July 22nd 2019

For those seeking income streams from their portfolio, ALV is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.2%, making it one of the best dividend companies in the market.

DB:ALV Historical Dividend Yield, July 22nd 2019
DB:ALV Historical Dividend Yield, July 22nd 2019

Next Steps:

For Allianz, there are three fundamental factors you should further examine:

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

  2. Historical Performance: What has ALV'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.

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