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I am not sure why this stock has not caught the attention of most traders (besides everyone being hooked on AMC, GME, etc.) but this is one of the best financially sound companies, in a growing sector, at a bargain price compared to their peer group.
Look at the following ratios alone (vs. Peer Group below):
P/E: 34.48 vs 55.56
P/CF: 14.48 vs. 181.67
P/S: 4.09 vs 12.58
P/B: 3.26 vs 13.56
Earnings Growth: 383.33 vs 7474
Quick Ratio: 2.33
TTM Net Sales: 6,073.53
TTM Net Income: 705.12
Currently trading at ~9.20. This can easily become a $100.00 stock, if we're comparing to the premium being paid to peer groups.
Thoughts?
FULL DISCLOSURE: I do own shares in this company.
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- 4 years ago
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That’s not my thesis. If the goal of value investing is to purchase financially sound companies who a) make money , b) carry low to modest debt, c) are in a growing industry and d) are managed properly, then my analysis above hits all that. Your example sure, yes, accurate and logical but a massive oversimplification.
Does the company make money? Would this be a financially sound investment? Do I feel I can easily grow my investment 5-10% annually, in a massively growing industry? If so, then the price will follow. Now obviously, those same logic don’t correlate to certain sectors or companies (EV, Tesla, covid stocks, etc)