I’ve been keeping an eye on Continental Resources, Inc. (NYSE:CLR) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CLR has a lot to offer. Basically, it is a financially-robust company with a a great history of performance, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Continental Resources here.
Good value with proven track record
CLR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CLR manages its cash and cost levels well, which is a crucial insight into the health of the company. CLR appears to have made good use of debt, producing operating cash levels of 0.6x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
CLR 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 CLR’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of US companies with similar levels of earnings, CLR’s share price is trading below the group’s average. This bolsters the proposition that CLR’s price is currently discounted.
Next Steps:
For Continental Resources, there are three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CLR’s future growth? Take a look at our free research report of analyst consensus for CLR’s outlook.
- Dividend Income vs Capital Gains: Does CLR 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 CLR as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CLR? 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.