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Avarga Limited (SGX:U09): The Best Of Both Worlds

Avarga Limited (SGX:U09) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of U09, it is a company with a an impressive history of performance, trading at a great value. 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, take a look at the report on Avarga here.

Undervalued with proven track record

Over the past year, U09 has grown its earnings by 86.77%, with its most recent figure exceeding its annual average over the past five years. Not only did U09 outperformed its past performance, its growth also surpassed the Forestry industry expansion, which generated a 19.46% earnings growth. This paints a buoyant picture for the company. U09’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of U09’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the forestry industry, U09 is also trading below its peers, relative to earnings generated. This further reaffirms that U09 is potentially undervalued.

SGX:U09 Income Statement June 27th 18
SGX:U09 Income Statement June 27th 18

Next Steps:

For Avarga, I’ve put together three key aspects you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for U09’s future growth? Take a look at our free research report of analyst consensus for U09’s outlook.

  2. Financial Health: Is U09’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 U09? 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 pass 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.