Aeterna Zentaris Inc. (TSE:AEZS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AEZS, it is a company with great financial health as well as a a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Aeterna Zentaris here.
Flawless balance sheet with proven track record
AEZS has a strong track record of performance. In the previous year, AEZS delivered an impressive double-digit return of 119% Not surprisingly, AEZS outperformed its industry which returned 17%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. AEZS’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 an important determinant of the company’s health. Investors should not worry about AEZS’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. AEZS 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 Aeterna Zentaris, I’ve put together three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for AEZS’s future growth? Take a look at our free research report of analyst consensus for AEZS’s outlook.
- Valuation: What is AEZS 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 AEZS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AEZS? 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.