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Why BIOREM Inc. (CVE:BRM) Could Have A Place In Your Portfolio

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on BIOREM Inc. (CVE:BRM) due to its excellent fundamentals in more than one area. BRM is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on BIOREM here.

Flawless balance sheet with solid track record

Over the past few years, BRM has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 38%, which is an optimistic signal for the future. BRM'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 BRM has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at BRM's capital structure, the company 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. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

TSXV:BRM Income Statement, July 9th 2019
TSXV:BRM Income Statement, July 9th 2019

Next Steps:

For BIOREM, there are three fundamental aspects you should look at:

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

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

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