In This Article:
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Staffline Group plc (LON:STAF) due to its excellent fundamentals in more than one area. STAF is a well-regarded dividend payer with a an impressive track record of performance, trading at a great value. 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, read the full report on Staffline Group here.
Outstanding track record, good value and pays a dividend
STAF delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 23%, which paints a buoyant picture for the company. STAF’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 STAF’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the professional services industry, STAF is also trading below its peers, relative to earnings generated. This bolsters the proposition that STAF’s price is currently discounted.
For those seeking income streams from their portfolio, STAF is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.0%.
Next Steps:
For Staffline Group, I’ve compiled three relevant factors you should further research:
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Future Outlook: What are well-informed industry analysts predicting for STAF’s future growth? Take a look at our free research report of analyst consensus for STAF’s outlook.
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Financial Health: Are STAF’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 STAF? 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.