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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Eagle Pharmaceuticals, Inc. (NASDAQ:EGRX) due to its excellent fundamentals in more than one area. EGRX is a company with great financial health as well as a an impressive history 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, read the full report on Eagle Pharmaceuticals here.
Excellent balance sheet with proven track record
EGRX delivered a satisfying double-digit returns of 22% in the most recent year Unsurprisingly, EGRX surpassed the Biotechs industry return of 20%, which gives us more confidence of the company’s capacity to drive earnings going forward. EGRX’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that EGRX has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. EGRX’s has produced operating cash levels of 1.64x total debt over the past year, which implies that EGRX’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Eagle Pharmaceuticals, I’ve compiled three key factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for EGRX’s future growth? Take a look at our free research report of analyst consensus for EGRX’s outlook.
- Valuation: What is EGRX 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 EGRX is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EGRX? 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 editorial-team@simplywallst.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.