A Holistic Look At Evergreen Gaming Corporation (CVE:TNA)

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Evergreen Gaming Corporation (CVE:TNA) due to its excellent fundamentals in more than one area. TNA is a financially-sound company with a an impressive history of performance, trading at a discount. 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 Evergreen Gaming here.

Flawless balance sheet with outstanding track record

Over the past few years, TNA has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 25.17%, which paints a buoyant picture for the company. TNA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TNA manages its cash and cost levels well, which is an important determinant of the company’s health. TNA seems to have put its debt to good use, generating operating cash levels of 1.19x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

TSXV:TNA Income Statement June 20th 18
TSXV:TNA Income Statement June 20th 18

TNA’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 TNA’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, TNA’s share price is trading below the group’s average. This bolsters the proposition that TNA’s price is currently discounted.

TSXV:TNA Intrinsic Value June 20th 18
TSXV:TNA Intrinsic Value June 20th 18

Next Steps:

For Evergreen Gaming, I’ve compiled three important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for TNA’s future growth? Take a look at our free research report of analyst consensus for TNA’s outlook.
  2. Dividend Income vs Capital Gains: Does TNA 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 TNA as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TNA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!