Ascendant Resources Inc (TSE:ASND) 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 ASND, it is a company that has been able to sustain great financial health, trading at an attractive share price. 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 Ascendant Resources here.
Very undervalued with excellent balance sheet
ASND is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that ASND has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ASND’s has produced operating cash levels of 15.73x total debt over the past year, which implies that ASND’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. ASND is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if ASND’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, ASND’s share price is trading below the group’s average. This supports the theory that ASND is potentially underpriced.
For Ascendant Resources, there are three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ASND’s future growth? Take a look at our free research report of analyst consensus for ASND’s outlook.
- Historical Performance: What has ASND’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ASND? 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 email@example.com.