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:
- 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.
- 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.
- 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!