Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on BioSpecifics Technologies Corp. (NASDAQ:BSTC) due to its excellent fundamentals in more than one area. BSTC is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary 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 BioSpecifics Technologies here.
Flawless balance sheet with proven track record
BSTC delivered a bottom-line expansion of 56% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 20% return to shareholders, which is an notable feat for the company. BSTC’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 indicates that BSTC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at BSTC’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. BSTC 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 BioSpecifics Technologies, there are three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for BSTC’s future growth? Take a look at our free research report of analyst consensus for BSTC’s outlook.
- Valuation: What is BSTC 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 BSTC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BSTC? 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.