Does CUC face the risk of succumbing to its debt-load?

With debt at 5.05% of equity, CUC may be thought of as having low leverage. This range is considered safe as CUC is not taking on too much debt obligation, which can be restrictive and risky for equity-holders. Investors’ risk associated with debt is virtually non-existent with CUC, and the company has plenty of headroom and ability to raise debt should it need to in the future.

Next Steps:

Although CUC’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings. This may indicate room for improvement in terms of its operating efficiency. Furthermore, its low liquidity raises concerns over whether current asset management practices are properly implemented for the small-cap. I admit this is a fairly basic analysis for CUC’s financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Carube Copper to get a more holistic view of the stock by looking at:

• 1. Historical Performance: What has CUC’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. 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.