CorMedix Inc (NASDAQ:CRMD) Exemplifies a High-Growth Stock Screen Methodology

For investors looking for a structured, rule-driven way to find stocks with high growth potential, the method described in Louis Navellier's "The Little Book That Makes You Rich" presents a strong framework. This approach centers on eight essential elements meant to find companies showing better earnings momentum, faster growth, and sound financial condition. Through a step-by-step filter for good earnings revisions, large sales and profit increases, and high returns on equity, the technique tries to identify businesses at the start of a strong growth period.

CorMedix Inc (NASDAQ:CRMD) stands out as a significant result from a filter using these ideas. The pharmaceutical company, centered on bringing its main product DefenCath to market to prevent catheter-related bloodstream infections, seems to display many of the high-growth traits Navellier's approach looks for.

Matching the Growth Standards

A close look at CorMedix's recent financial data shows a company meeting many rules from the Little Book method with notable force. The given numbers show a business experiencing a major change, probably fueled by the initial market introduction of its key product.

• High Sales and Earnings Increases: The company shows very large year-over-year revenue growth of 1,648% and quarterly sales growth of 810%. This meets Navellier's rule for rising sales growth, a main sign of a good product launch and market acceptance. In a similar way, earnings per share have jumped 354% over the last year and 2,620% compared to the last quarter, easily passing the method's earnings growth requirement.

• Good Earnings Momentum and Surprises: The method stresses positive earnings surprises as an indicator a company is regularly doing better than cautious analyst forecasts. CorMedix has exceeded EPS estimates in each of the past four quarters, with an average surprise above 54%. Also, positive earnings revisions are an important forward signal; analysts have increased their estimates for the coming quarter by almost 15% in the last three months, pointing to more belief in the short-term future.

• Growing Profitability and Good Cash Flow: As sales rise quickly, it is important that profitability grows at the same time. CorMedix's operating margin has increased by over 111% in the past year, displaying widening operating margins and operational efficiency. The company also shows good cash flow, with free cash flow growth above 319% year-over-year, supplying resources for more growth and business activity.

• High Return on Equity: The last element of the method searches for efficient users of capital. CorMedix's return on equity (ROE) of 43.4% is very high, showing the company is creating large profits from shareholder investment and meeting the rule for a high return on equity.

Fundamental Condition and Valuation Overview

Beyond the specific filter rules, a wider view of CorMedix's fundamental position shows a varied but interesting situation. Based on ChartMill's review, the company has a fundamental score of 6 out of 10.

• Profitability & Growth: The company scores well on profitability measures, with excellent profit, operating, and gross margins that place it near the best in the pharmaceuticals industry. Its growth score is good (8/10), mirroring the exceptional past increases and solid forecasts for future earnings and sales growth.
• Valuation: Maybe most notably, the stock gets a full 10/10 on valuation. Even with its growth story, it is priced at a large reduction compared to both industry competitors and the wider S&P 500 based on standard price-to-earnings and price-to-free-cash-flow measures. This mix of high growth and low price is a key point for many growth and value investors.
• Financial Condition: The financial condition score is more moderate (5/10). While the company has very low debt—a big positive—its Altman-Z score shows some financial risk, and liquidity measures are seen as typical for the industry. This points to an area for investors to watch.

For a full detailed view, you can see the complete fundamental analysis report for CRMD.

A Classic Growth Example?

CorMedix offers a strong example for the "Little Book" method. It is a company showing the exact catalytic financial speed the technique aims to find: very fast sales growth, rising earnings, higher analyst estimates, and growing margins, all signs of a good new product launch. The very high return on equity indicates this growth is being reached efficiently.

Still, investors need to balance this strong growth story with the company's early commercial phase and the connected risks shown in its average financial condition score. The method is naturally focused on the future, looking for stocks where these good trends are just starting to appear in the financial reports, which seems true for CorMedix.

Find Other Possible Results The filter that found CorMedix can produce other companies showing similar growth traits. You can review the present results and change the rules yourself using the Louis Navellier "Little Book" growth stock screen.

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 investment. You should do your own research and talk with a qualified financial advisor before making any investment choices.