In This Article:
Attractive stocks have exceptional fundamentals. In the case of United Internet AG (FRA:UTDI), there’s is a well-regarded dividend-paying company with a a great history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on United Internet here.
Undervalued with proven track record and pays a dividend
Over the past year, UTDI has grown its earnings by 55%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, UTDI also outperformed its industry, which delivered a growth of 18%. This paints a buoyant picture for the company. UTDI is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of UTDI’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the telecom industry, UTDI is also trading below its peers, relative to earnings generated. This further reaffirms that UTDI is potentially undervalued.
For those seeking income streams from their portfolio, UTDI is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.3%.
Next Steps:
For United Internet, I’ve compiled three fundamental factors you should look at:
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Future Outlook: What are well-informed industry analysts predicting for UTDI’s future growth? Take a look at our free research report of analyst consensus for UTDI’s outlook.
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Financial Health: Are UTDI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UTDI? 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.