Is Beadell Resources Limited’s (ASX:BDR) Balance Sheet Strong Enough To Weather A Storm?

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Can BDR service its debt comfortably?

BDR’s level of debt is appropriate relative to its total equity, at 23.46%. This range is considered safe as BDR is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. BDR’s risk around capital structure is low, and the company has the headroom and ability to raise debt should it need to in the future.

Next Steps:

BDR has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at an appropriate level. Furthermore, the company exhibits an ability to meet its near term obligations should an adverse event occur. This is only a rough assessment of financial health, and I’m sure BDR has company-specific issues impacting its capital structure decisions. I suggest you continue to research Beadell Resources to get a more holistic view of the stock by looking at:

• 1. Future Outlook: What are well-informed industry analysts predicting for BDR’s future growth? Take a look at our free research report of analyst consensus for BDR’s outlook.
• 2. Valuation: What is BDR 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 BDR is currently mispriced by the market.
• 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.