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IRadimed Corporation (NASDAQ:IRMD) 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 IRMD, it is a financially-healthy company with a strong track record and a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on IRadimed here.
Flawless balance sheet with high growth potential
Investors in search for stocks with room to flourish should look no further than IRMD, with its expected earnings growth of 31%. Earnings growth is paired with an eye-catching top-line trajectory of 62%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. Over the past few years, IRMD has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did IRMD outperformed its past performance, its growth also exceeded the Medical Equipment industry expansion, which generated a 32% earnings growth. This is an notable feat for the company.
IRMD’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 IRMD’s debt levels because the company has none! This means it is running its business only on equity capital 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.
For IRadimed, I’ve put together three important aspects you should further examine:
- Valuation: What is IRMD 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 IRMD is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does IRMD return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from IRMD as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IRMD? 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 email@example.com. 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.