Centuria Industrial REIT (ASX:CIP) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CIP, it is a company with a a strong history of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Centuria Industrial REIT here.

Solid track record and good value

CIP delivered a bottom-line expansion of 94.6% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, CIP also outperformed its industry, which delivered a growth of -5.9%. This paints a buoyant picture for the company. CIP’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 CIP’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, CIP’s share price is trading below the group’s average. This further reaffirms that CIP is potentially undervalued.

Next Steps:

For Centuria Industrial REIT, I’ve compiled three fundamental aspects you should look at:

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

2. Financial Health: Are CIP’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.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CIP? 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.