How Yangarra Resources Ltd. (TSE:YGR) Could Add Value To Your Portfolio

Attractive stocks have exceptional fundamentals. In the case of Yangarra Resources Ltd. (TSE:YGR), there’s is a company with a strong track record of performance, trading at a great value. 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, take a look at the report on Yangarra Resources here.

Undervalued with solid track record

In the past couple of years, YGR has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did YGR outperformed its past performance, its growth also exceeded the Oil and Gas industry expansion, which generated a 62% earnings growth. This is what investors like to see! YGR is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of YGR’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, YGR’s share price is trading below the group’s average. This further reaffirms that YGR is potentially undervalued.

TSX:YGR Income Statement, September 2nd 2019
TSX:YGR Income Statement, September 2nd 2019

Next Steps:

For Yangarra Resources, I’ve compiled three relevant factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for YGR’s future growth? Take a look at our free research report of analyst consensus for YGR’s outlook.
  2. Financial Health: Are YGR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of YGR? 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.