Why PhotoCure ASA (OB:PHO) Is Truly A Standout Investment

PhotoCure ASA (OB:PHO) 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 PHO, it is a company with strong financial health as well as a excellent growth outlook. 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, take a look at the report on PhotoCure here.

Flawless balance sheet with high growth potential

Bullish market analysts are forecasting fast-growing PHO to deliver an exceptional sales growth rate of 82.26% over the next year. This underlies the notable 20.70% return on equity over the next few years leading up to 2021. PHO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that PHO has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Looking at PHO's capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity 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.

Next Steps:

For PhotoCure, there are three key factors you should further research:

1. Historical Performance: What has PHO'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.
2. Valuation: What is PHO 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 PHO is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PHO? 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.