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I've been keeping an eye on Eagle Health Holdings Limited (ASX:EHH) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EHH has a lot to offer. Basically, it is a company with great financial health as well as a an impressive track record of performance. 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, read the full report on Eagle Health Holdings here.
Solid track record with adequate balance sheet
EHH delivered a bottom-line expansion of 42% 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 25%, which is an notable feat for the company. EHH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that EHH has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. EHH’s debt-to-equity ratio stands at 12%, which means its debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future.
Next Steps:
For Eagle Health Holdings, I've compiled three fundamental aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for EHH’s future growth? Take a look at our free research report of analyst consensus for EHH’s outlook.
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Valuation: What is EHH 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 EHH is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EHH? 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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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.