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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Revance Therapeutics, Inc. (NASDAQ:RVNC) due to its excellent fundamentals in more than one area. RVNC is a company with strong financial health as well as an optimistic future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Revance Therapeutics here.
Flawless balance sheet with high growth potential
One reason why investors are attracted to RVNC is its notable earnings growth potential in the near future of 38%. 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. RVNC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that RVNC manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at RVNC's capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. RVNC 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 Revance Therapeutics, I've put together three essential factors you should further examine:
- Historical Performance: What has RVNC'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 RVNC 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 RVNC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RVNC? 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.