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Corcept Therapeutics Incorporated (NASDAQ:CORT): The Best Of Both Worlds

Simply Wall St

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Corcept Therapeutics Incorporated (NASDAQ:CORT) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CORT, it is a financially-robust company with a great track record and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Corcept Therapeutics here.

Flawless balance sheet and undervalued

Over the past few years, CORT has demonstrated a proven ability to generate robust returns of 27% Not surprisingly, CORT outperformed its industry which returned 18%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward.

NasdaqCM:CORT Past and Future Earnings, March 24th 2019

CORT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that CORT has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CORT currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NasdaqCM:CORT Historical Debt, March 24th 2019

Next Steps:

For Corcept Therapeutics, there are three relevant aspects you should further examine:

  1. Valuation: What is CORT 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 CORT is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does CORT 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 CORT as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CORT? 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.