U.S. Markets closed

A Look At IRadimed Corporation's (NASDAQ:IRMD) Exceptional Fundamentals

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Attractive stocks have exceptional fundamentals. In the case of IRadimed Corporation (NASDAQ:IRMD), there's is a financially-sound company with a great track record and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on IRadimed here.

High growth potential with excellent balance sheet

IRMD is an attractive stock for growth-seeking investors, with an expected earnings growth of 32% in the upcoming year. This growth in the bottom-line is bolstered by an impressive top-line expansion of 64% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. Over the past few years, IRMD has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did IRMD outperformed its past performance, its growth also surpassed the Medical Equipment industry expansion, which generated a 34% earnings growth. This paints a buoyant picture for the company.

NasdaqCM:IRMD Past and Future Earnings, May 3rd 2019

IRMD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that IRMD manages its cash and cost levels well, which is a crucial insight into the health of the company. IRMD seems to have put its debt to good use, generating operating cash levels of 2.06x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NasdaqCM:IRMD Historical Debt, May 3rd 2019

Next Steps:

For IRadimed, I've put together three fundamental factors you should further research:

  1. Valuation: What is IRMD 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 IRMD is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does IRMD 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 IRMD as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IRMD? 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.