In This Article:
I’ve been keeping an eye on JOST Werke AG (FRA:JST) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe JST 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, 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 JOST Werke here.
Undervalued with adequate balance sheet
JST is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that JST manages its cash and cost levels well, which is a crucial insight into the health of the company. JST appears to have made good use of debt, producing operating cash levels of 0.35x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. JST’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if JST’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, JST’s share price is trading below the group’s average. This supports the theory that JST is potentially underpriced.
Next Steps:
For JOST Werke, I’ve put together three relevant aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for JST’s future growth? Take a look at our free research report of analyst consensus for JST’s outlook.
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Historical Performance: What has JST’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.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JST? 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.