As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Questor Technology Inc. (CVE:QST), it is a financially-sound company with a strong history and a buoyant future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Questor Technology here.
Flawless balance sheet with solid track record
Over the past few years, QST has demonstrated a proven ability to generate robust returns of 24%. Unsurprisingly, QST surpassed the Energy Services industry return of 11%, which gives us more confidence of the company’s capacity to drive earnings going forward.
QST’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 QST manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at QST’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. QST 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.
Next Steps:
For Questor Technology, I’ve compiled three fundamental factors you should further research:
- Valuation: What is QST 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 QST is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does QST 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 QST as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of QST? 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.