Should You Be Holding Ascencio SCA (EBR:ASC)?

Ascencio SCA (EBR:ASC) 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 ASC, it is a notable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. 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 Ascencio here.

6 star dividend payer and good value

ASC’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 ASC’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the reits industry, ASC is also trading below its peers, relative to earnings generated. This further reaffirms that ASC is potentially undervalued.

ENXTBR:ASC Intrinsic Value Export December 18th 18
ENXTBR:ASC Intrinsic Value Export December 18th 18

Income investors would also be happy to know that ASC is one of the highest dividend payers in the market, with current dividend yield standing at 7.1%. ASC has also been regularly increasing its dividend payments to shareholders over the past decade.

ENXTBR:ASC Historical Dividend Yield December 18th 18
ENXTBR:ASC Historical Dividend Yield December 18th 18

Next Steps:

For Ascencio, there are three relevant aspects you should further examine:

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

  2. Historical Performance: What has ASC’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 ASC? 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.

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