Attractive stocks have exceptional fundamentals. In the case of Questerre Energy Corporation (TSE:QEC), there's 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 broad commentary, read the full report on Questerre Energy here.
Good value with adequate balance sheet
With a debt-to-equity ratio of 8.7%, QEC’s debt level is acceptable. This implies that QEC has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. QEC appears to have made good use of debt, producing operating cash levels of 0.8x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. QEC's shares are now trading at a price below its true value based on its PE ratio of 6.71x, compared to the industry and wider stock market ratio, making it a relatively cheap stock compared to its peers.
For Questerre Energy, I've put together three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for QEC’s future growth? Take a look at our free research report of analyst consensus for QEC’s outlook.
- Historical Performance: What has QEC'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 QEC? 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.