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Panoramic Resources Limited (ASX:PAN): A Fundamentally Attractive Investment

Panoramic Resources Limited (ASX:PAN) 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 PAN, it is a company with strong financial health as well as an optimistic future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Panoramic Resources here.

Flawless balance sheet with exceptional growth potential

One reason why investors are attracted to PAN is its notable earnings growth potential in the near future of 88%. This growth in the bottom-line is bolstered by an equally impressive top-line expansion over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. PAN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that PAN manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at PAN’s capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. PAN has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

ASX:PAN Future Profit December 10th 18
ASX:PAN Future Profit December 10th 18

Next Steps:

For Panoramic Resources, there are three essential factors you should further research:

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  1. Historical Performance: What has PAN’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.

  2. Valuation: What is PAN 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 PAN is currently mispriced by the market.

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