U.S. Markets closed

An Examination Of Nickel Mines Limited (ASX:NIC)

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Nickel Mines Limited (ASX:NIC), there's is a company with strong financial health as well as a excellent future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Nickel Mines here.

Flawless balance sheet with exceptional growth potential

One reason why investors may be attracted to NIC is its explosive triple-digit earnings growth potential in the near future. The optimistic bottom-line growth is supported by a similarly outstanding revenue growth over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. NIC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that NIC manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at NIC's capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

ASX:NIC Past and Future Earnings, April 26th 2019

Next Steps:

For Nickel Mines, I've put together three key factors you should look at:

  1. Historical Performance: What has NIC'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. Valuation: What is NIC 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 NIC is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NIC? 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.