A Holistic Look At Exco Technologies Limited (TSE:XTC)

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 a great history high-quality dividend payments, trading at a great value. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Exco Technologies here.

Very undervalued with excellent balance sheet and pays a dividend

XTC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that XTC manages its cash and cost levels well, which is a crucial insight into the health of the company. XTC’s has produced operating cash levels of 1.51x total debt over the past year, which implies that XTC’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. XTC’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of XTC’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, XTC’s share price is trading below the group’s average. This further reaffirms that XTC is potentially undervalued.

TSX:XTC Intrinsic value, April 17th 2019
TSX:XTC Intrinsic value, April 17th 2019

For those seeking income streams from their portfolio, XTC is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.7%.

TSX:XTC Historical Dividend Yield, April 17th 2019
TSX:XTC Historical Dividend Yield, April 17th 2019

Next Steps:

For Exco Technologies, I’ve put together three relevant aspects 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.