Is Public Joint Stock Company Territorial Generating Company No. 1 (MCX:TGKA) Potentially Underrated?

In This Article:

Attractive stocks have exceptional fundamentals. In the case of Public Joint Stock Company Territorial Generating Company No. 1 (MCX:TGKA), there's is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Territorial Generating Company No. 1 here.

Excellent balance sheet with solid track record

In the previous year, TGKA has ramped up its bottom line by 18%, with its latest earnings level surpassing its average level over the last five years. Not only did TGKA outperformed its past performance, its growth also exceeded the Electric Utilities industry expansion, which generated a -5.4% earnings growth. This is an optimistic signal for the future. TGKA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. TGKA seems to have put its debt to good use, generating operating cash levels of 1.54x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

MISX:TGKA Income Statement, August 30th 2019
MISX:TGKA Income Statement, August 30th 2019

Next Steps:

For Territorial Generating Company No. 1, there are three key aspects you should further research:

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

  2. Valuation: What is TGKA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TGKA is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TGKA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.