Looking At Norbord Inc (TSE:OSB) From All Angles

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Norbord Inc (TSE:OSB) due to its excellent fundamentals in more than one area. OSB is a company with great financial health as well as a a great track record of performance. 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 Norbord here.

Solid track record with adequate balance sheet

OSB delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 44.34% return to shareholders, which paints a buoyant picture for the company. OSB’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that OSB has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. OSB’s has produced operating cash levels of 1.04x total debt over the past year, which implies that OSB’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

TSX:OSB Income Statement June 20th 18
TSX:OSB Income Statement June 20th 18

Next Steps:

For Norbord, I’ve put together three important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for OSB’s future growth? Take a look at our free research report of analyst consensus for OSB’s outlook.
  2. Valuation: What is OSB 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 OSB is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OSB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!