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A Holistic Look At Zogenix, Inc. (NASDAQ:ZGNX)

Simply Wall St

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Zogenix, Inc. (NASDAQ:ZGNX) due to its excellent fundamentals in more than one area. ZGNX 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. For those interested in digging a bit deeper into my commentary, take a look at the report on Zogenix here.

Flawless balance sheet with high growth potential

Investors in search for stocks with room to flourish should look no further than ZGNX, with its expected earnings growth of 73%. The optimistic bottom-line growth is supported by a similarly outstanding revenue growth over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. ZGNX'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 ZGNX manages its cash and cost levels well, which is a crucial insight into the health of the company. Investors should not worry about ZGNX’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$2.2b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NasdaqGM:ZGNX Past and Future Earnings, August 22nd 2019
NasdaqGM:ZGNX Past and Future Earnings, August 22nd 2019

Next Steps:

For Zogenix, I've compiled three fundamental aspects you should look at:

  1. Historical Performance: What has ZGNX'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 ZGNX 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 ZGNX is currently mispriced by the market.

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