Mesabi Trust (NYSE:MSB) 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 MSB, it is a company with great financial health as well as a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Mesabi Trust here.
Flawless balance sheet with proven track record
In the past couple of years, MSB has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance meant earnings outstripped equities on the balance sheet, leading to significant return on equity of over 100%, which is an notable feat for the company. MSB’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MSB currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, 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.
For Mesabi Trust, I’ve compiled three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for MSB’s future growth? Take a look at our free research report of analyst consensus for MSB’s outlook.
- Valuation: What is MSB 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 MSB is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MSB? 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.