Why I Like Northern Star Resources Limited (ASX:NST)

Attractive stocks have exceptional fundamentals. In the case of Northern Star Resources Limited (ASX:NST), there's is a company with robust financial health as well as a excellent growth outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my high-level commentary, read the full report on Northern Star Resources here.

Flawless balance sheet with high growth potential

NST’s outstanding revenue growth of 78% forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This underlies the notable 29% return on equity over the next few years leading up to 2021. NST's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that NST manages its cash and cost levels well, which is a crucial insight into the health of the company. NST appears to have made good use of debt, producing operating cash levels of 20.62x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

Next Steps:

For Northern Star Resources, there are three relevant aspects you should further examine:

1. Historical Performance: What has NST'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.
2. Valuation: What is NST 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 NST is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NST? 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.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.