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I’ve been keeping an eye on Sage Therapeutics, Inc. (NASDAQ:SAGE) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SAGE has a lot to offer. Basically, it is a company with robust financial health as well as a excellent growth 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 Sage Therapeutics here.
Flawless balance sheet with high growth potential
Investors in search for stocks with room to flourish should look no further than SAGE, with its expected earnings growth of 57%. This growth in the bottom-line is bolstered by an equally impressive top-line expansion over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. SAGE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that SAGE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Investors should not worry about SAGE’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$9.1b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Sage Therapeutics, I’ve put together three relevant factors you should further research:
- Historical Performance: What has SAGE’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.
- Valuation: What is SAGE 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 SAGE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SAGE? 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.