Why Huami Corporation (NYSE:HMI) Is Truly A Standout Investment

I've been keeping an eye on Huami Corporation (NYSE:HMI) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe HMI has a lot to offer. Basically, it is a company with robust financial health as well as a excellent future outlook. 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, read the full report on Huami here.

Exceptional growth potential with excellent balance sheet

HMI’s outstanding triple-digit top-line expansion forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This is expected to flow down into an impressive return on equity of 29.81% over the next couple of years. HMI's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. HMI seems to have put its debt to good use, generating operating cash levels of 76.39x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

Next Steps:

For Huami, I've put together three relevant factors you should further research:

1. Historical Performance: What has HMI'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 HMI 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 HMI is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HMI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.