How Revasum, Inc. (ASX:RVS) Could Add Value To Your Portfolio

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Revasum, Inc. (ASX:RVS) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of RVS, it is a company with impressive financial health as well as a buoyant growth outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Revasum here.

Exceptional growth potential with excellent balance sheet

RVS is an attractive stock for growth-seeking investors, with an expected earnings growth reaching triple digits in the upcoming year. This growth in the bottom-line is bolstered by an impressive top-line expansion of 81% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. RVS'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 indicates that RVS has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Investors should not worry about RVS’s debt levels because the company has a very miniscule amount on its books. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

ASX:RVS Past and Future Earnings, July 18th 2019
ASX:RVS Past and Future Earnings, July 18th 2019

Next Steps:

For Revasum, I've put together three key aspects you should further research:

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

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

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