Should You Be Holding Intermin Resources Ltd (ASX:IRC)?

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Intermin Resources Ltd (ASX:IRC) due to its excellent fundamentals in more than one area. IRC 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 understanding where the figures come from and want to see the analysis, take a look at the report on Intermin Resources here.

Flawless balance sheet and undervalued

IRC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that IRC has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Investors should not worry about IRC’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future. IRC 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, IRC’s share price is trading below the group’s average. This bolsters the proposition that IRC’s price is currently discounted.

ASX:IRC PE PEG Gauge January 13th 19

Next Steps:

For Intermin Resources, there are three important aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for IRC’s future growth? Take a look at our free research report of analyst consensus for IRC’s outlook.

2. Historical Performance: What has IRC’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.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IRC? 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.