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 robust financial health as well as a buoyant growth outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Vanda Pharmaceuticals here.
Flawless balance sheet with reasonable growth potential
VNDA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that VNDA manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about VNDA’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-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.
For Vanda Pharmaceuticals, I’ve put together three key factors you should further research:
- 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.
- 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.
- 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!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.