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An Examination Of GW Pharmaceuticals plc (NASDAQ:GWPH)

Simply Wall St

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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 GW Pharmaceuticals plc (NASDAQ:GWPH), it is a company with impressive financial health as well as an optimistic future outlook. Below is a brief commentary 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 GW Pharmaceuticals here.

Exceptional growth potential with excellent balance sheet

Investors in search for stocks with room to flourish should look no further than GWPH, with its expected earnings growth of 82%. This growth in the bottom-line is bolstered by an equally impressive top-line expansion over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. GWPH'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 implies that GWPH manages its cash and cost levels well, which is a crucial insight into the health of the company. GWPH’s debt-to-equity ratio stands at 2.5%, which means its debt level is low. This means the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NasdaqGM:GWPH Past and Future Earnings, July 9th 2019

Next Steps:

For GW Pharmaceuticals, I've compiled three pertinent aspects you should look at:

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