CorMedix Inc (NASDAQ:CRMD): A Textbook Fit for a High-Growth Stock Screener

For investors looking for a systematic way to find high-growth stocks, the method described in Louis Navellier’s "The Little Book That Makes You Rich" presents a strong framework. The plan centers on eight basic rules meant to find companies showing better earnings momentum, faster sales, growing profitability, and sound financial condition. By filtering for these exact numerical measures, investors try to locate stocks with the possibility for major price gains. One firm that recently came from such a filter is CorMedix Inc (NASDAQ:CRMD).

A Good Fit for the Growth Rules

CorMedix seems to fit well with many of Navellier’s main ideas, shown by its recent financial numbers. The firm’s very high growth path and operational gains are especially significant.

• Very High Sales and Earnings Growth: The plan stresses faster growth. CorMedix’s revenue growth of more than 1,647% year-over-year and quarterly sales growth over 810% are remarkable, showing a firm in a strong sales launch period. This is supported by very high earnings growth, with EPS growing by 354% over the last year and an exceptional 2,620% quarter-over-quarter.
• Positive Earnings Momentum and Surprises: A key part of the method is finding companies that regularly beat forecasts, making analysts increase their estimates. CorMedix has surpassed EPS forecasts in each of the past four quarters, with an average beat of more than 54%. Also, analysts have increased their estimates for the next quarter by almost 33% in the last three months, a clear sign of growing belief in short-term results.
• Growing Profitability and High Returns: The filter searches for growing operating margins and high returns on equity, indicators of efficient and profitable growth. CorMedix’s operating margin has increased by more than 111% in the past year. Its Return on Equity (ROE) of 43.4% is much higher than the plan’s lowest limit of 10%, showing outstanding efficiency in creating profits from shareholder money.
• Sound Cash Flow Creation: Strong and increasing free cash flow is important for paying for future growth. CorMedix’s free cash flow grew by 319% over the past year, giving the firm financial room and supporting the durability of its business plan.

Basic Health and Valuation Setting

Beyond the exact filter rules, a look at CorMedix’s wider basic profile shows a blended but interesting picture. The firm’s total basic rating is neutral, with positive and negative points investors must balance.

Positive Points:

• Exceptional Profitability Numbers: Even with a short history of profits, CorMedix currently has top-level margins in its industry, including a Gross Margin of 92.6%, an Operating Margin of 48.5%, and a Profit Margin of 75.8%.
• Strong Valuation: The stock seems priced very low compared to both its industry and the wider market. It trades at a P/E ratio of 6.1 and a forward P/E of only 5.0, which are much lower than industry and S&P 500 averages.
• Firm Balance Sheet: The firm has no debt, a major plus for financial health and risk.

Points to Note:

• New Profitability History: The basic analysis states that the firm reported negative net income and operating cash flow in each of the previous five years. Its current strong profitability is a very new change after the sales launch of its main product, DefenCath.
• Average Solvency Scores: While having no debt, some liquidity measures like the Current Ratio are below industry averages. The Altman-Z score points to limited short-term bankruptcy danger but is not in the safest area.

A more complete list of these positive and negative points is in the full ChartMill Fundamental Analysis Report for CRMD.

End Note: A High-Growth Prospect with Changing Features

For investors using the "Little Book" plan, CorMedix offers a strong, though particular, example. It clearly shows the kind of very high sales speed, earnings momentum, and margin growth the method looks for. The firm is plainly in a change period, moving from a development-stage biopharma to a selling company, which is seen in its excellent recent growth numbers.

However, this change itself is central to the investment idea. The plan is made to spot growth early, and CorMedix’s financials are now showing strong signs. The very low price suggests the market may still be valuing the firm as if it were in its time before sales, possibly creating a chance if the growth path holds.

Want to find other companies that match this growth-centered plan? You can view the live filter and change the rules yourself using the Little Book That Makes You Rich screener on ChartMill.

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Disclaimer: This article is for information only and is not financial advice, a suggestion, or an offer to buy or sell any security. Investing has risk, including the possible loss of the original amount. You should do your own complete research and talk with a qualified financial advisor before making any investment choices.