Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Aurinia Pharmaceuticals Inc. (TSE:AUP) due to its excellent fundamentals in more than one area. AUP is a company with strong financial health as well as a buoyant growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Aurinia Pharmaceuticals here.
Flawless balance sheet with exceptional growth potential
AUP is an attractive stock for growth-seeking investors, with an expected earnings growth of 67% in the upcoming year. The optimistic bottom-line growth is supported by a similarly outstanding revenue growth over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. AUP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that AUP has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Investors should not worry about AUP’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. AUP has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Aurinia Pharmaceuticals, I've put together three pertinent aspects you should further research:
- Historical Performance: What has AUP'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.
- Valuation: What is AUP 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 AUP is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AUP? 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 firstname.lastname@example.org. 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.