Base Resources Limited (ASX:BSE): A Fundamentally Attractive Investment
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 Base Resources Limited (ASX:BSE), it is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Base Resources here.
Flawless balance sheet with proven track record
In the past couple of years, BSE has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did BSE outperformed its past performance, its growth also surpassed the Metals and Mining industry expansion, which generated a 26% earnings growth. This is an notable feat for the company. BSE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that BSE manages its cash and cost levels well, which is a crucial insight into the health of the company. BSE appears to have made good use of debt, producing operating cash levels of 1.32x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Base Resources, I’ve put together three fundamental factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for BSE’s future growth? Take a look at our free research report of analyst consensus for BSE’s outlook.
Valuation: What is BSE 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 BSE is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BSE? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
