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Huami Corporation (NYSE:HMI) 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 HMI, it is a company with robust financial health as well as an optimistic future 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 Huami here.
High growth potential with excellent balance sheet
Investors in search for stocks with room to flourish should look no further than HMI, with its expected earnings growth of 40%. Earnings growth is paired with an eye-catching top-line trajectory of 78%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. HMI'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 suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. HMI appears to have made good use of debt, producing operating cash levels of 35.38x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Huami, I've compiled three important factors you should look at:
- Historical Performance: What has HMI'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 HMI 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 HMI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HMI? 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 email@example.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.