Why Northern Star Resources Limited (ASX:NST) Could Be Your Next Investment
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Northern Star Resources Limited (ASX:NST) due to its excellent fundamentals in more than one area. NST is a company with impressive financial health as well as an optimistic growth 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 Northern Star Resources here.
Flawless balance sheet with reasonable growth potential
NST’s outstanding revenue growth of 75% forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This underlies the notable 27% return on equity over the next few years leading up to 2021. NST is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that NST has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. NST seems to have put its debt to good use, generating operating cash levels of 20.62x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Northern Star Resources, I’ve compiled three fundamental aspects you should further examine:
Historical Performance: What has NST’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 NST 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 NST is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NST? 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.
