In This Article:
Attractive stocks have exceptional fundamentals. In the case of Power Finance Corporation Limited (NSE:PFC), there’s is a dependable dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Power Finance here.
Very undervalued established dividend payer
PFC is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, PFC’s share price is trading below the group’s average. This supports the theory that PFC is potentially underpriced.
Income investors would also be happy to know that PFC is one of the highest dividend payers in the market, with current dividend yield standing at 9.0%. PFC has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Power Finance, there are three pertinent aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for PFC’s future growth? Take a look at our free research report of analyst consensus for PFC’s outlook.
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Historical Performance: What has PFC’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 PFC? 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.