Continental Resources, Inc. (NYSE:CLR) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CLR, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Continental Resources here.
Good value with adequate balance sheet
CLR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CLR manages its cash and cost levels well, which is a crucial insight into the health of the company. CLR’s has produced operating cash levels of 0.58x total debt over the past year, which implies that CLR’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. CLR’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 market, CLR is also trading below other listed companies on the US stock exchange, relative to earnings generated. This further reaffirms that CLR is potentially undervalued.
For Continental Resources, there are three pertinent aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CLR’s future growth? Take a look at our free research report of analyst consensus for CLR’s outlook.
- Historical Performance: What has CLR’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CLR? 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 firstname.lastname@example.org. 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.