Attractive stocks have exceptional fundamentals. In the case of Ophir Energy Plc (LON:OPHR), there’s is a company with robust financial health as well as a buoyant growth outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Ophir Energy here.
Excellent balance sheet with high growth potential
Bullish market analysts are forecasting fast-growing OPHR to deliver an exceptional triple-digit sales growth rate over the next year, bolstered by its equally impressive cash-generating ability, as analysts predict its operating cash flows will more than double over the same time period. This suggests that OPHR’s revenue is made up of high-quality cash from OPHR’s day-to-day business as opposed to one-off income. OPHR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that OPHR has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. OPHR appears to have made good use of debt, producing operating cash levels of 0.76x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Ophir Energy, there are three important factors you should further examine:
- Historical Performance: What has OPHR’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.
- Valuation: What is OPHR 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 OPHR is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OPHR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.