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I've been keeping an eye on OceanaGold Corporation (TSE:OGC) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe OGC has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on OceanaGold here.
Excellent balance sheet and good value
OGC's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that OGC has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. OGC appears to have made good use of debt, producing operating cash levels of 2.05x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. OGC's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if OGC's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of OGC's peers, it is also trading at a value below those of similar sizes in asset terms. This bolsters the proposition that OGC's price is currently discounted.
For OceanaGold, I've put together three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for OGC’s future growth? Take a look at our free research report of analyst consensus for OGC’s outlook.
- Historical Performance: What has OGC'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 OGC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.