Yahoo Finance Why I Like Cortex Business Solutions Inc (CVE:CBX)
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Cortex Business Solutions Inc (CVE:CBX) due to its excellent fundamentals in more than one area. CBX is a financially-healthy company with a a buoyant growth outlook, not yet factored into the 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, read the full report on Cortex Business Solutions here.
Excellent balance sheet and good value
CBX’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of CBX’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the internet industry, CBX is also trading below its peers of similar sizes in terms of their assets. This supports the theory that CBX is potentially underpriced.
CBX’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. CBX’s has produced operating cash levels of 42.63x total debt over the past year, which implies that CBX’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Cortex Business Solutions, there are three fundamental aspects you should further research:
Historical Performance: What has CBX’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.
Dividend Income vs Capital Gains: Does CBX 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 CBX as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CBX? 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.
