Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Apollo Medical Holdings, Inc. (NASDAQ:AMEH) due to its excellent fundamentals in more than one area. AMEH 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 digger a bit deeper into my commentary, take a look at the report on Apollo Medical Holdings here.
Solid track record with excellent balance sheet
Over the past few years, AMEH has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 20% return to shareholders, which is an optimistic signal for the future. AMEH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that AMEH manages its cash and cost levels well, which is a key determinant of the company’s health. AMEH seems to have put its debt to good use, generating operating cash levels of 3.44x 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.
For Apollo Medical Holdings, I’ve compiled three essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for AMEH’s future growth? Take a look at our free research report of analyst consensus for AMEH’s outlook.
- Valuation: What is AMEH 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 AMEH is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMEH? 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 firstname.lastname@example.org. 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.