Attractive stocks have exceptional fundamentals. In the case of Ring Energy Inc (NYSEMKT:REI), there’s is a company with strong financial health as well as a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Ring Energy here.
Flawless balance sheet with high growth potential
Bullish market analysts are forecasting fast-growing REI to deliver an exceptional triple-digit sales growth rate over the next year, made up of high-quality, operational cash from its core business, which is expected to more than double over the next year. This suggests that REI’s revenue is made up of high-quality cash from REI’s day-to-day business as opposed to one-off income. REI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that REI has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Looking at REI’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. 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 Ring Energy, I’ve compiled three relevant aspects you should further examine:
- Historical Performance: What has REI’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.
- Valuation: What is REI 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 REI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of REI? 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.