Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on MeVis Medical Solutions AG (ETR:M3V) due to its excellent fundamentals in more than one area. M3V is a company with great financial health as well as a an impressive track record of performance. 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 MeVis Medical Solutions here.

Flawless balance sheet with solid track record

Over the past year, M3V has grown its earnings by 15%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 21%, which is an notable feat for the company. M3V is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that M3V has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. M3V currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. M3V 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 MeVis Medical Solutions, I've put together three important aspects you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for M3V’s future growth? Take a look at our free research report of analyst consensus for M3V’s outlook.

2. Valuation: What is M3V 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 M3V is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of M3V? 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.