A Spotlight On Aerie Pharmaceuticals, Inc.’s (NASDAQ:AERI) Fundamentals

I’ve been keeping an eye on Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AERI has a lot to offer. Basically, it 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 understanding where the figures come from and want to see the analysis, take a look at the report on Aerie Pharmaceuticals here.

Flawless balance sheet with high growth potential

AERI is an attractive stock for growth-seeking investors, with an expected earnings growth of 59% in the upcoming year. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. AERI’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that AERI manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about AERI’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NasdaqGM:AERI Future Profit January 17th 19

Next Steps:

For Aerie Pharmaceuticals, I’ve put together three fundamental aspects you should further research:

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

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