Orocobre Limited (ASX:ORE) 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 ORE, it is a company with impressive financial health as well as a buoyant growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Orocobre here.

High growth potential with adequate balance sheet

ORE is an attractive stock for growth-seeking investors, with an expected earnings growth of 31% in the upcoming year. This growth in the bottom-line is bolstered by an impressive top-line expansion of 65% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. ORE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ORE manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at ORE’s capital structure, the company has very trivial amounts of debt on its balance sheet. ORE has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

Next Steps:

For Orocobre, I’ve compiled three key factors you should look at:

1. Historical Performance: What has ORE’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 ORE 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 ORE is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ORE? 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.