Yahoo Finance Why I Like Capstone Mining Corp (TSE:CS)
As an investor, I look for investments which does 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 Capstone Mining Corp (TSE:CS), it is a company that has been able to sustain great financial health, trading at an attractive share price. 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 Capstone Mining here.
Very undervalued with adequate balance sheet
CS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CS manages its cash and cost levels well, which is a key determinant of the company’s health. CS appears to have made good use of debt, producing operating cash levels of 0.55x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. CS is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, CS’s share price is trading below the group’s average. This supports the theory that CS is potentially underpriced.
Next Steps:
For Capstone Mining, I’ve compiled three relevant factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for CS’s future growth? Take a look at our free research report of analyst consensus for CS’s outlook.
Historical Performance: What has CS’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 CS? 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.
