I've been keeping an eye on Mountfield Group Plc (LON:MOGP) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MOGP has a lot to offer. Basically, 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. If you're interested in understanding beyond my broad commentary, read the full report on Mountfield Group here.

Undervalued with excellent balance sheet

With a debt-to-equity ratio of 8.3%, MOGP’s debt level is acceptable. This means that MOGP’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. MOGP seems to have put its debt to good use, generating operating cash levels of 1.35x 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. MOGP's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of MOGP's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the capital goods industry, MOGP is also trading below its peers, relative to earnings generated. This further reaffirms that MOGP is potentially undervalued.

Next Steps:

For Mountfield Group, I've put together three relevant factors you should further examine:

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

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