I’ve been keeping an eye on Orient Refractories Limited (NSE:ORIENTREF) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ORIENTREF has a lot to offer. Basically, it is a financially-robust company with an impressive track record and a excellent growth outlook. 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 Orient Refractories here.
Flawless balance sheet with outstanding track record
ORIENTREF delivered a bottom-line expansion of 33% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 28%. which paints a buoyant picture for the company.
ORIENTREF is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that ORIENTREF manages its cash and cost levels well, which is an important determinant of the company’s health. Looking at ORIENTREF’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. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Orient Refractories, I’ve put together three essential aspects you should further examine:
-
Valuation: What is ORIENTREF 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 ORIENTREF is currently mispriced by the market.
-
Dividend Income vs Capital Gains: Does ORIENTREF 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 ORIENTREF as an investment.
-
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ORIENTREF? 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.