Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Sartorius Stedim Biotech S.A. ( EPA:DIM ) due to its excellent fundamentals in more than one area. DIM is a company with great financial health as well as a a strong history of performance. 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 Sartorius Stedim Biotech here .
Flawless balance sheet with solid track record
DIM delivered a bottom-line expansion of 38% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 21%, which is an optimistic signal for the future. DIM's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that DIM manages its cash and cost levels well, which is an important determinant of the company’s health. DIM seems to have put its debt to good use, generating operating cash levels of 1.95x 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.
For Sartorius Stedim Biotech, there are three important factors you should look at:
- Future Outlook : What are well-informed industry analysts predicting for DIM’s future growth? Take a look at our free research report of analyst consensus for DIM’s outlook.
- Valuation : What is DIM 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 DIM is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DIM? 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.