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Independence Group NL (ASX:IGO) Has Attractive Fundamentals

Kristin Rankin

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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 Independence Group NL (ASX:IGO), it is a company with robust financial health as well as an optimistic growth outlook. 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 Independence Group here.

Flawless balance sheet with reasonable growth potential

IGO’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that IGO manages its cash and cost levels well, which is an important determinant of the company’s health. IGO seems to have put its debt to good use, generating operating cash levels of 2.92x 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.

ASX:IGO Past and Future Earnings, February 21st 2019

Next Steps:

For Independence Group, I’ve put together three relevant aspects you should further examine:

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