Why I Like Atalaya Mining Plc (LON:ATYM)
Attractive stocks have exceptional fundamentals. In the case of Atalaya Mining Plc (LON:ATYM), there’s is a financially-sound company with a a buoyant future outlook, not yet factored into the price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Atalaya Mining here.
Flawless balance sheet with high growth potential
ATYM’s outstanding revenue growth of 63% forecasted for the near future is certainly eye-catching for investors on the hunt for growth, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by 76% next year. This indicates that revenue is driven by high-quality cash from ATYM’s day-to-day business as opposed to one-off income. ATYM’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ATYM’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the market, ATYM is also trading below other listed companies on the GB stock exchange, relative to earnings generated. This further reaffirms that ATYM is potentially undervalued.
ATYM’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. Looking at ATYM’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. ATYM 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.
Next Steps:
For Atalaya Mining, I’ve put together three relevant aspects you should further research:
Historical Performance: What has ATYM’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.
Dividend Income vs Capital Gains: Does ATYM 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 ATYM as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ATYM? 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.
