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Brief Commentary On Seattle Genetics, Inc.'s (NASDAQ:SGEN) Fundamentals

Simply Wall St

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Attractive stocks have exceptional fundamentals. In the case of Seattle Genetics, Inc. (NASDAQ:SGEN), there's is a company with strong financial health as well as an optimistic future 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, take a look at the report on Seattle Genetics here.

Flawless balance sheet with high growth potential

SGEN is an attractive stock for growth-seeking investors, with an expected earnings growth of 81% in the upcoming year. Earnings growth is paired with an eye-catching top-line trajectory of 57%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. SGEN's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. SGEN currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$10b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NasdaqGS:SGEN Past and Future Earnings, July 13th 2019

Next Steps:

For Seattle Genetics, I've put together three pertinent factors you should further research:

  1. Historical Performance: What has SGEN'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. Valuation: What is SGEN 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 SGEN is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SGEN? 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 editorial-team@simplywallst.com. 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.