Global Cord Blood Corporation (NYSE:CO): The Best Of Both Worlds
Global Cord Blood Corporation (NYSE:CO) 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 CO, it is a financially-sound company with an impressive history 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, take a look at the report on Global Cord Blood here.
Flawless balance sheet with proven track record
CO delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did CO outperformed its past performance, its growth also exceeded the Healthcare industry expansion, which generated a 9.96% earnings growth. This paints a buoyant picture for the company.
CO’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. Looking at CO’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. CO 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.
Next Steps:
For Global Cord Blood, I’ve compiled three pertinent factors you should further examine:
Valuation: What is CO 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 CO is currently mispriced by the market.
Dividend Income vs Capital Gains: Does CO 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 CO as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
