Does The Data Make Synergie SE (EPA:SDG) An Attractive Investment?
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I've been keeping an eye on Synergie SE (EPA:SDG) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SDG has a lot to offer. Basically, it is a financially-robust company with an impressive track record high-grade dividend payments, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Synergie here.
Undervalued with excellent balance sheet and pays a dividend
SDG's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that SDG manages its cash and cost levels well, which is a key determinant of the company’s health. SDG seems to have put its debt to good use, generating operating cash levels of 0.53x 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. SDG'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 professional services industry, SDG is also trading below its peers, relative to earnings generated. This supports the theory that SDG is potentially underpriced.
For those seeking income streams from their portfolio, SDG is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.7%.
Next Steps:
For Synergie, I've put together three key aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for SDG’s future growth? Take a look at our free research report of analyst consensus for SDG’s outlook.
Historical Performance: What has SDG'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 SDG? 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.
