These Factors Make COLTENE Holding AG (VTX:CLTN) An Interesting Investment

COLTENE Holding AG (VTX:CLTN) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CLTN, it is a company with great financial health as well as a an impressive history of performance. 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, take a look at the report on COLTENE Holding here.

Flawless balance sheet with solid track record

In the previous year, CLTN has ramped up its bottom line by 24%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, CLTN also outperformed its industry, which delivered a growth of 12%. This is an notable feat for the company. CLTN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that CLTN has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CLTN appears to have made good use of debt, producing operating cash levels of 1.71x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SWX:CLTN Income Statement Export January 24th 19
SWX:CLTN Income Statement Export January 24th 19

Next Steps:

For COLTENE Holding, there are three relevant factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for CLTN’s future growth? Take a look at our free research report of analyst consensus for CLTN’s outlook.

  2. Valuation: What is CLTN 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 CLTN is currently mispriced by the market.

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

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