Yahoo Finance Should Orocobre Limited (ASX:ORE) Be Your Next Stock Pick?
As an investor, I look for investments which do not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Orocobre Limited (ASX:ORE), it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Orocobre here.
Proven track record with adequate balance sheet
In the past couple of years, ORE has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, ORE also outperformed its industry, which delivered a growth of 20%. This is what investors like to see! ORE'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 ORE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. ORE’s debt-to-equity ratio stands at 26%, which means its debt level is acceptable. This implies that ORE 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.
Next Steps:
For Orocobre, I've put together three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for ORE’s future growth? Take a look at our free research report of analyst consensus for ORE’s outlook.
Valuation: What is ORE 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 ORE is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ORE? 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 editorial-team@simplywallst.com. 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.
