Yahoo Finance A Holistic Look At Kirkland Lake Gold Ltd (TSE:KL)
I’ve been keeping an eye on Kirkland Lake Gold Ltd (TSX:KL) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe KL has a lot to offer. Basically, it is a financially-sound company with a strong history and a excellent future 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 Kirkland Lake Gold here.
Flawless balance sheet with solid track record
In the past couple of years, KL has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, KL also outperformed its industry, which delivered a growth of 26.57%. This paints a buoyant picture for the company.
KL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that KL manages its cash and cost levels well, which is an important determinant of the company’s health. KL appears to have made good use of debt, producing operating cash levels of 8.18x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Kirkland Lake Gold, there are three fundamental aspects you should look at:
Valuation: What is KL 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 KL is currently mispriced by the market.
Dividend Income vs Capital Gains: Does KL 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 KL as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KL? 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 pass 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.
