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These Factors Make Haemonetics Corporation (NYSE:HAE) An Interesting Investment

Attractive stocks have exceptional fundamentals. In the case of Haemonetics Corporation (NYSE:HAE), there's is a financially-healthy company with an impressive history and a excellent growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Haemonetics here.

High growth potential with proven track record

Investors in search for stocks with room to flourish should look no further than HAE, with its expected earnings growth of 32% which is expected to flow into an impressive return on equity of 30% over the next couple of years. In the past couple of years, HAE has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, HAE also outperformed its industry, which delivered a growth of 29%. This is what investors like to see!

NYSE:HAE Past and Future Earnings, August 12th 2019
NYSE:HAE Past and Future Earnings, August 12th 2019

HAE'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 crucial insight into the health of the company. HAE appears to have made good use of debt, producing operating cash levels of 0.31x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:HAE Historical Debt, August 12th 2019
NYSE:HAE Historical Debt, August 12th 2019

Next Steps:

For Haemonetics, I've put together three pertinent aspects you should further research:

  1. Valuation: What is HAE 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 HAE is currently mispriced by the market.

  2. Dividend Income vs Capital Gains: Does HAE 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 HAE as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HAE? 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.

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