In This Article:
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Attractive stocks have exceptional fundamentals. In the case of Surgutneftegas Public Joint Stock Company (MCX:SNGS), there's is a financially-healthy company with a strong track record of performance, trading at a discount. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Surgutneftegas here.
Flawless balance sheet and good value
Over the past few years, SNGS has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did SNGS outperformed its past performance, its growth also exceeded the Oil and Gas industry expansion, which generated a 69% earnings growth. This paints a buoyant picture for the company. SNGS's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. SNGS currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is rather impressive for a RUруб957b market cap company. SNGS has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
SNGS's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of SNGS's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, SNGS's share price is trading below the group's average. This bolsters the proposition that SNGS's price is currently discounted.
Next Steps:
For Surgutneftegas, there are three relevant factors you should look at:
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Future Outlook: What are well-informed industry analysts predicting for SNGS’s future growth? Take a look at our free research report of analyst consensus for SNGS’s outlook.
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Dividend Income vs Capital Gains: Does SNGS return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from SNGS as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SNGS? 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.