Should You Be Holding Westshore Terminals Investment Corporation (TSE:WTE)?

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Westshore Terminals Investment Corporation (TSE:WTE), it is a company with great financial health as well as a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Westshore Terminals Investment here.

Excellent balance sheet with proven track record

Over the past year, WTE has grown its earnings by 17.34%, with its most recent figure exceeding its annual average over the past five years. Not only did WTE outperformed its past performance, its growth also exceeded the Infrastructure industry expansion, which generated a 13.71% earnings growth. This paints a buoyant picture for the company. WTE’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that WTE manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at WTE’s capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

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

Next Steps:

For Westshore Terminals Investment, there are three key aspects you should further examine:

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