Reasons Why I Like Hamilton Thorne Ltd (CVE:HTL)

Hamilton Thorne Ltd (CVE:HTL) 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 HTL, it is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Hamilton Thorne here.

Solid track record with excellent balance sheet

In the past couple of years, HTL has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 26.71%, which is an optimistic signal for the future. HTL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. HTL seems to have put its debt to good use, generating operating cash levels of 0.25x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

Next Steps:

For Hamilton Thorne, I've compiled three key factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for HTL’s future growth? Take a look at our free research report of analyst consensus for HTL’s outlook.
2. Valuation: What is HTL 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 HTL is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HTL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.