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Is Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) Potentially Underrated?

Simply Wall St

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) due to its excellent fundamentals in more than one area. VNDA is a company with impressive financial health as well as a buoyant future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Vanda Pharmaceuticals here.

Flawless balance sheet with reasonable growth potential

VNDA's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that VNDA has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Looking at VNDA'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. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NasdaqGM:VNDA Past and Future Earnings, July 8th 2019

Next Steps:

For Vanda Pharmaceuticals, I've put together three important aspects you should further examine:

  1. Historical Performance: What has VNDA'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 VNDA 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 VNDA is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VNDA? 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.