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Is DBV Technologies S.A. (EPA:DBV) Potentially Underrated?

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DBV Technologies S.A. (EPA:DBV) 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 DBV, it is a company with robust financial health as well as a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on DBV Technologies here.

Flawless balance sheet with high growth potential

Investors in search for stocks with room to flourish should look no further than DBV, with its expected earnings growth of 35%. This growth in the bottom-line is bolstered by an equally impressive top-line expansion over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. DBV’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 indicates that DBV has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. With a debt-to-equity ratio of 1.8%, DBV’s debt level is relatively low. DBV 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.

ENXTPA:DBV Future Profit February 6th 19
ENXTPA:DBV Future Profit February 6th 19

Next Steps:

For DBV Technologies, there are three important factors you should look at:

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  1. Historical Performance: What has DBV’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 DBV 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 DBV is currently mispriced by the market.

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