Sartorius Stedim Biotech S.A. (EPA:DIM): The Best Of Both Worlds

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Sartorius Stedim Biotech S.A. (EPA:DIM) 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 DIM, it is a company with great financial health as well as a a great 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 Sartorius Stedim Biotech here.

Flawless balance sheet with solid track record

DIM delivered a bottom-line expansion of 22% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, DIM also outperformed its industry, which delivered a growth of 22%. This is what investors like to see! DIM 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. DIM seems to have put its debt to good use, generating operating cash levels of 1.16x 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.

ENXTPA:DIM Income Statement Export February 11th 19
ENXTPA:DIM Income Statement Export February 11th 19

Next Steps:

For Sartorius Stedim Biotech, I’ve put together three essential aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for DIM’s future growth? Take a look at our free research report of analyst consensus for DIM’s outlook.
  2. Valuation: What is DIM 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 DIM is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DIM? 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 editorial-team@simplywallst.com.