Brief Commentary On Zynerba Pharmaceuticals, Inc.’s (NASDAQ:ZYNE) Fundamentals

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ZYNE, it is a company with robust financial health as well as an optimistic growth outlook. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Zynerba Pharmaceuticals here.

Flawless balance sheet with high growth potential

One reason why investors are attracted to ZYNE is its notable earnings growth potential in the near future of 66%. 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. ZYNE’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 ZYNE’s debt levels because the company has a very miniscule amount on its books. The 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.

NasdaqGM:ZYNE Past and Future Earnings, May 16th 2019
NasdaqGM:ZYNE Past and Future Earnings, May 16th 2019

Next Steps:

For Zynerba Pharmaceuticals, there are three essential factors you should further research:

  1. Historical Performance: What has ZYNE’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.
  2. Valuation: What is ZYNE 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 ZYNE is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ZYNE? 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.