A Spotlight On Exco Technologies Limited's (TSE:XTC) Fundamentals

I've been keeping an eye on Exco Technologies Limited (TSE:XTC) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe XTC has a lot to offer. Basically, it is a financially-robust company with a strong history superior dividend payments, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Exco Technologies here.

Flawless balance sheet, undervalued and pays a dividend

XTC's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that XTC manages its cash and cost levels well, which is a crucial insight into the health of the company. XTC appears to have made good use of debt, producing operating cash levels of 2.59x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. XTC's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. 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. Compared to the rest of the machinery industry, XTC is also trading below its peers, relative to earnings generated. This further reaffirms that XTC is potentially undervalued.

Income investors would also be happy to know that XTC is a great dividend company, with a current yield standing at 4.4%. XTC has also been regularly increasing its dividend payments to shareholders over the past decade.

Next Steps:

For Exco Technologies, I've put together three pertinent factors you should further research:

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