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Wesdome Gold Mines Ltd (TSE:WDO): The Best Of Both Worlds

Attractive stocks have exceptional fundamentals. In the case of Wesdome Gold Mines Ltd (TSE:WDO), there’s is a company with impressive financial health as well as a excellent future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Wesdome Gold Mines here.

Flawless balance sheet with high growth potential

Bullish market analysts are forecasting fast-growing WDO to deliver an exceptional sales growth rate of 69% over the next year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to ramp up by 68% next year. This indicates that revenue is driven by high-quality cash from WDO’s day-to-day business as opposed to one-off income. WDO’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 indicates that WDO has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. WDO appears to have made good use of debt, producing operating cash levels of 4.97x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

TSX:WDO Future Profit October 15th 18
TSX:WDO Future Profit October 15th 18

Next Steps:

For Wesdome Gold Mines, I’ve compiled three fundamental aspects you should further examine:

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  1. Historical Performance: What has WDO’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.

  2. Valuation: What is WDO 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 WDO is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WDO? 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 editorial-team@simplywallst.com.