Is Advanced Emissions Solutions Inc (NASDAQ:ADES) Potentially Underrated?

Advanced Emissions Solutions Inc (NASDAQ:ADES) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ADES, it is a financially-robust company with a strong history and a excellent future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Advanced Emissions Solutions here.

Flawless balance sheet with proven track record

ADES delivered a satisfying double-digit returns of 34.73% in the most recent year Not surprisingly, ADES outperformed its industry which returned 13.89%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward.

NasdaqGM:ADES Future Profit Jun 20th 18
NasdaqGM:ADES Future Profit Jun 20th 18

ADES’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ADES manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about ADES’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NasdaqGM:ADES Historical Debt Jun 20th 18
NasdaqGM:ADES Historical Debt Jun 20th 18

Next Steps:

For Advanced Emissions Solutions, I’ve compiled three fundamental aspects you should look at:

  1. Valuation: What is ADES worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ADES is currently mispriced by the market.

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

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

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