In This Article:
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Advanced Enzyme Technologies Limited (NSE:ADVENZYMES) due to its excellent fundamentals in more than one area. ADVENZYMES is a financially-sound company with a great track record and an optimistic 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 Advanced Enzyme Technologies here.
Flawless balance sheet with proven track record
In the previous year, ADVENZYMES has ramped up its bottom line by 47%, with its latest earnings level surpassing its average level over the last five years. Not only did ADVENZYMES outperformed its past performance, its growth also surpassed the Chemicals industry expansion, which generated a 22% earnings growth. This paints a buoyant picture for the company.
ADVENZYMES’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ADVENZYMES manages its cash and cost levels well, which is a key determinant of the company’s health. ADVENZYMES seems to have put its debt to good use, generating operating cash levels of 2.42x 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 Advanced Enzyme Technologies, I’ve compiled three essential factors you should further examine:
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Valuation: What is ADVENZYMES 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 ADVENZYMES is currently mispriced by the market.
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Dividend Income vs Capital Gains: Does ADVENZYMES return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ADVENZYMES as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ADVENZYMES? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.