Yahoo Finance Should Parex Resources Inc (TSE:PXT) Be Your Next Stock Pick?
Parex Resources Inc (TSX:PXT) 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 PXT, it is a financially-robust company with a strong history and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Parex Resources here.
Flawless balance sheet with solid track record
Over the past few years, PXT has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, PXT also outperformed its industry, which delivered a growth of 81.26%. This is an optimistic signal for the future.
PXT’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. Investors should not worry about PXT’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is rather impressive for a CA$3.82B market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Parex Resources, there are three fundamental aspects you should further examine:
Valuation: What is PXT 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 PXT is currently mispriced by the market.
Dividend Income vs Capital Gains: Does PXT return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from PXT as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PXT? 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 pass 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.
