Vita Life Sciences (ASX:VSC) has tickled my fancy. Having only read a few pages of the last full year annual report, I've decided to pursue more investigation for this company. A little closer look at the fundamentals sees revenues, earnings, cash flow and return on equity (ROE) all rising. Particular emphasis is placed on the ROE for this company. It is increasing shareholder's equity at a healthy pace whilst simultaneously increasing its earnings, and still, the ROE is heading north. The group has zero debt and an extremely healthy balance sheet (approx $9m in cash). The company actively engages in share buy-backs (not sure at this point in time if it's beneficial as i haven't worked out the value of the business but it looks positive). On top of this, the group hasn't needed to raise much equity capital in recent time.
However, some current areas for concern (for me) is the volatility in the ROE and in the groups free cash flows in the past 10 years. Further, the slow growth rate in sales is also adding to the picture. Despite this, i will still pursue my interests in this company.
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