Should You Be Holding Atria Oyj (HEL:ATRAV)?

Simply Wall St

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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Atria Oyj (HEL:ATRAV), it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Atria Oyj here.

Undervalued with adequate balance sheet

ATRAV's has produced operating cash levels of 0.27x total debt over the past year, which implies that ATRAV's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. Also, ATRAV’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps ATRAV expand. ATRAV's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ATRAV's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the market, ATRAV is also trading below other listed companies on the FI stock exchange, relative to earnings generated. This further reaffirms that ATRAV is potentially undervalued.

HLSE:ATRAV Price Estimation Relative to Market, May 23rd 2019

Next Steps:

For Atria Oyj, I've put together three essential factors you should further research:

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