Should Shaver Shop Group Limited (ASX:SSG) Be Your Next Stock Pick?

In this article:

Attractive stocks have exceptional fundamentals. In the case of Shaver Shop Group Limited (ASX:SSG), there's is a company that has been able to sustain great financial health, 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 understanding where the figures come from and want to see the analysis, take a look at the report on Shaver Shop Group here.

Very undervalued with flawless balance sheet

SSG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. SSG seems to have put its debt to good use, generating operating cash levels of 1.17x 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. SSG'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 SSG's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, SSG's share price is trading below the group's average. This bolsters the proposition that SSG's price is currently discounted.

ASX:SSG Intrinsic value, August 20th 2019
ASX:SSG Intrinsic value, August 20th 2019

Next Steps:

For Shaver Shop Group, I've put together three key factors you should further research:

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

  2. Historical Performance: What has SSG'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 SSG? 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.

Advertisement