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A Holistic Look At Firan Technology Group Corporation (TSE:FTG)

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Firan Technology Group Corporation (TSE:FTG), it is a financially-robust company with an optimistic future outlook, not yet priced into the stock. In the following section, I expand a bit more 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 Firan Technology Group here.

Flawless balance sheet and undervalued

FTG'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 FTG's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, FTG's share price is trading below the group's average. This bolsters the proposition that FTG's price is currently discounted.

TSX:FTG Past and Future Earnings, September 23rd 2019
TSX:FTG Past and Future Earnings, September 23rd 2019

FTG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that FTG has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. FTG seems to have put its debt to good use, generating operating cash levels of 1.35x 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.

TSX:FTG Historical Debt, September 23rd 2019
TSX:FTG Historical Debt, September 23rd 2019

Next Steps:

For Firan Technology Group, I've compiled three essential aspects you should further examine:

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  1. Historical Performance: What has FTG's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Dividend Income vs Capital Gains: Does FTG 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 FTG as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FTG? 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.