Attractive stocks have exceptional fundamentals. In the case of MEI Pharma, Inc. (NASDAQ:MEIP), there's is a company with strong financial health as well as a buoyant growth 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, take a look at the report on MEI Pharma here.
Flawless balance sheet with high growth potential
Investors in search for stocks with room to flourish should look no further than MEIP, with its expected earnings growth of 46%. 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. MEIP's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that MEIP has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MEIP currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. MEIP 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 MEI Pharma, I've put together three fundamental aspects you should look at:
- Historical Performance: What has MEIP'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 MEIP 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 MEIP is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MEIP? 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 firstname.lastname@example.org. 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.