Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
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 Public Joint Stock Company Saratov Oil Refinery (MCX:KRKN), it is a financially-healthy company with a a strong history of performance, trading at a great value. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Saratov Oil Refinery here.
Flawless balance sheet and undervalued
KRKN delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, KRKN also outperformed its industry, which delivered a growth of 47%. This is an optimistic signal for the future. KRKN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that KRKN manages its cash and cost levels well, which is a crucial insight into the health of the company. KRKN 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. KRKN has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
KRKN's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if KRKN's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the oil and gas industry, KRKN is also trading below its peers, relative to earnings generated. This further reaffirms that KRKN is potentially undervalued.
For Saratov Oil Refinery, there are three pertinent factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for KRKN’s future growth? Take a look at our free research report of analyst consensus for KRKN’s outlook.
- Dividend Income vs Capital Gains: Does KRKN 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 KRKN as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KRKN? 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. Thank you for reading.