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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Quidel Corporation (NASDAQ:QDEL), it is a financially-healthy company with a strong history and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Quidel here.
Solid track record with reasonable growth potential
QDEL is an attractive stock for growth-seeking investors, with an expected earnings growth of 21% in the upcoming year underlying the notable 24% return on equity over the next few years leading up to 2022. QDEL delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did QDEL outperformed its past performance, its growth also exceeded the Medical Equipment industry expansion, which generated a 32% earnings growth. This is an optimistic signal for the future.
QDEL's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. QDEL's has produced operating cash levels of 1.44x total debt over the past year, which implies that QDEL's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Quidel, I've compiled three important factors you should further examine:
- Valuation: What is QDEL 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 QDEL is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does QDEL return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from QDEL as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of QDEL? 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.