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I’ve been keeping an eye on Ascendant Resources Inc. (TSE:ASND) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ASND has a lot to offer. Basically, it is a financially-healthy company with a a buoyant future outlook, not yet priced into the stock. Below is a brief commentary 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 Ascendant Resources here.
Very undervalued with excellent balance sheet
Investors in search for stocks with room to flourish should look no further than ASND, with its expected earnings growth of 53% which is expected to flow into an impressive return on equity of 25% over the next couple of years. ASND 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. Also, relative to the rest of its peers with similar levels of earnings, ASND’s share price is trading below the group’s average. This further reaffirms that ASND is potentially undervalued.
ASND’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ASND has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ASND’s has produced operating cash levels of 5.96x total debt over the past year, which implies that ASND’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Ascendant Resources, there are three fundamental aspects you should further examine:
- Historical Performance: What has ASND’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.
- Dividend Income vs Capital Gains: Does ASND 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 ASND as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ASND? 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 firstname.lastname@example.org. 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. On rare occasion, data errors may occur. Thank you for reading.