Attractive stocks have exceptional fundamentals. In the case of Norway Royal Salmon AS (OB:NRS), there's is a company with strong financial health as well as an optimistic growth outlook. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Norway Royal Salmon here.

Flawless balance sheet with reasonable growth potential

NRS is expected to churn out cash in the short term, with its operating cash flow predicted to expand at a triple-digit growth rate. This underlies the notable 29% return on equity over the next few years leading up to 2022. NRS'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. NRS seems to have put its debt to good use, generating operating cash levels of 0.73x 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 Norway Royal Salmon, I've compiled three pertinent aspects you should further research:

1. Historical Performance: What has NRS'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 NRS 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 NRS is currently mispriced by the market.

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