Saracen Mineral Holdings Limited (ASX:SAR) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SAR, it is a financially-robust company with an impressive history and a buoyant growth outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on Saracen Mineral Holdings here.

Flawless balance sheet with solid track record

SAR is an attractive stock for growth-seeking investors, with an expected earnings growth of 21% in the upcoming year which is expected to flow into an impressive return on equity of 24% over the next couple of years. Over the past few years, SAR has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did SAR outperformed its past performance, its growth also exceeded the Metals and Mining industry expansion, which generated a 26% earnings growth. This is an optimistic signal for the future.

SAR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. SAR appears to have made good use of debt, producing operating cash levels of 1174x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

Next Steps:

For Saracen Mineral Holdings, I’ve put together three essential aspects you should further research:

1. Valuation: What is SAR 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 SAR is currently mispriced by the market.

2. Dividend Income vs Capital Gains: Does SAR 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 SAR as an investment.

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