With the stock market constantly fluctuating, finding a gem like Keller Group (LSE: KLR) is like discovering a hidden treasure chest. In the past year alone, the industrial company has soared by an impressive 110%, but the exciting part is that there’s still room for growth, making it an excellent value investment opportunity.
Here are a few reasons why Keller Group is making waves in the market and why you should consider adding it to your portfolio:
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US Success:
Keller Group specializes in ground preparation for construction projects, and it’s currently thriving, particularly in the United States. The demand for Keller’s services is skyrocketing across America due to increased infrastructure spending, onshoring, semiconductor plant constructions, and data center expansions. -
Strong H1 Results:
Keller’s impeccable success is evident in its recent half-year results. Highlights include a 69% growth in underlying profit, a 28.4% return on capital employed – the highest in 15 years, a whopping 229% surge in free cash flow before interest and tax, and a 19% rise in dividend per share. The company has also raised its performance guidance for the year ahead, expecting it to exceed market expectations. -
Low Valuation:
Despite the impressive growth and future prospects, Keller Group remains undervalued. With a forward-looking P/E ratio of just 8.8, compared to the FTSE 250’s median of 13.4, the stock presents an appealing discount opportunity for investors. Analysts have been quick to raise their price targets, indicating further potential for growth. - Nice Dividend:
In addition to potential share price appreciation, Keller Group offers a decent dividend yield. With a 5% increase expected in dividend payouts for 2024, investors could benefit from both capital appreciation and a reliable income stream.
While Keller Group operates in a cyclical industry with inherent risks of industry downturns and short-term profit-taking, the overall appeal of the stock is significant. Consider diversifying your portfolio with Keller Group today for a well-rounded investment strategy that includes exposure to sectors beyond technology. With its impressive performance metrics, growth potential, and attractive valuation, Keller Group could be the next star in your investment portfolio.
