As an investor, I look for investments which do not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of China Electronics Optics Valley Union Holding Company Limited (HKG:798), it is a company with great financial health as well as a an impressive history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on China Electronics Optics Valley Union Holding here.

Solid track record with adequate balance sheet

In the previous year, 798 has ramped up its bottom line by 60%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, 798 also outperformed its industry, which delivered a growth of -13%. This is what investors like to see! 798's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 798 manages its cash and cost levels well, which is a key determinant of the company’s health. Debt funding requires timely payments on interest to lenders. 798’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.

Next Steps:

For China Electronics Optics Valley Union Holding, I've put together three essential factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 798’s future growth? Take a look at our free research report of analyst consensus for 798’s outlook.

2. Valuation: What is 798 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 798 is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 798? 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.