Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6514
    -0.0005 (-0.07%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • Bitcoin AUD

    107,934.93
    -567.14 (-0.52%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6035
    +0.0001 (+0.02%)
     
  • AUD/NZD

    1.0895
    -0.0007 (-0.07%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     

Why Bathurst Resources Limited (ASX:BRL) Is An Attractive Investment To Consider

I’ve been keeping an eye on Bathurst Resources Limited (ASX:BRL) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe BRL has a lot to offer. Basically, it is a company with great financial health as well as a a great track record of performance. 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 Bathurst Resources here.

Excellent balance sheet with proven track record

BRL has a strong track record of performance. In the previous year, BRL delivered an impressive double-digit return of 45% Not surprisingly, BRL outperformed its industry which returned 15%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. BRL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. BRL appears to have made good use of debt, producing operating cash levels of 2x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

ASX:BRL Income Statement, March 4th 2019
ASX:BRL Income Statement, March 4th 2019

Next Steps:

For Bathurst Resources, I’ve put together three pertinent aspects you should further research:

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

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

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BRL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.