What does Tri Origin Exploration Ltd’s (CVE:TOE) Balance Sheet Tell Us About Its Future?

Is TOE’s debt level acceptable?

TOE’s level of debt is appropriate relative to its total equity, at 14.42%. This range is considered safe as TOE is not taking on too much debt obligation, which may be constraining for future growth. Investors’ risk associated with debt is very low with TOE, and the company has plenty of headroom and ability to raise debt should it need to in the future.

Next Steps:

TOE’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise. However, the company exhibits an ability to meet its near term obligations should an adverse event occur. Keep in mind I haven’t considered other factors such as how TOE has been performing in the past. I suggest you continue to research Tri Origin Exploration to get a better picture of the stock by looking at:

1. Valuation: What is TOE 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 TOE is currently mispriced by the market.
2. Historical Performance: What has TOE’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 High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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.