Yourgene Health Plc (LON:YGEN): A Fundamentally Attractive Investment

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Yourgene Health Plc (LON:YGEN) 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 YGEN, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Yourgene Health here.

Good value with adequate balance sheet

YGEN's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that YGEN manages its cash and cost levels well, which is a crucial insight into the health of the company. YGEN’s debt-to-equity ratio stands at 2.7%, which means its debt level is low. YGEN has plenty of financial flexibility, without large debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. YGEN's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of YGEN's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the medical equipment industry, YGEN is also trading below its peers, relative to earnings generated. This bolsters the proposition that YGEN's price is currently discounted.

AIM:YGEN Intrinsic value, July 18th 2019
AIM:YGEN Intrinsic value, July 18th 2019

Next Steps:

For Yourgene Health, I've put together three essential factors you should look at:

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

  2. Historical Performance: What has YGEN'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.

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

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