Looking At SG Fleet Group Limited (ASX:SGF) From All Angles

I’ve been keeping an eye on SG Fleet Group Limited (ASX:SGF) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SGF has a lot to offer. Basically, it is a company with a a strong 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, take a look at the report on SG Fleet Group here.

Good value with proven track record

SGF delivered a bottom-line expansion of 19.83% in the prior year, 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 27.42%, which is an optimistic signal for the future. SGF 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. Compared to the rest of the commercial services industry, SGF is also trading below its peers, relative to earnings generated. This bolsters the proposition that SGF’s price is currently discounted.

ASX:SGF Income Statement Jun 19th 18

Next Steps:

For SG Fleet Group, I’ve put together three important factors you should further research:

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

2. Financial Health: Is SGF’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 SGF? 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.