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Attractive stocks have exceptional fundamentals. In the case of Foamix Pharmaceuticals Ltd. (NASDAQ:FOMX), there's is a company with robust financial health as well as 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, take a look at the report on Foamix Pharmaceuticals here.
Flawless balance sheet with high growth potential
FOMX is an attractive stock for growth-seeking investors, with an expected earnings growth of 57% in the upcoming year. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. FOMX's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that FOMX manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at FOMX's capital structure, the company 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. FOMX has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Foamix Pharmaceuticals, I've compiled three essential factors you should further examine:
- Historical Performance: What has FOMX'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.
- Valuation: What is FOMX 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 FOMX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FOMX? 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 email@example.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.