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An Examination Of Griffin Mining Limited (LON:GFM)

Simply Wall St

I've been keeping an eye on Griffin Mining Limited (LON:GFM) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe GFM has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. 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, read the full report on Griffin Mining here.

Flawless balance sheet and undervalued

GFM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. GFM seems to have put its debt to good use, generating operating cash levels of 11.3x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. GFM's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if GFM's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the metals and mining industry, GFM is also trading below its peers, relative to earnings generated. This further reaffirms that GFM is potentially undervalued.

AIM:GFM Price Estimation Relative to Market, August 9th 2019

Next Steps:

For Griffin Mining, there are three relevant aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for GFM’s future growth? Take a look at our free research report of analyst consensus for GFM’s outlook.
  2. Historical Performance: What has GFM'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.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GFM? 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.