In This Article:
I've been keeping an eye on China State Construction Development Holdings Limited (HKG:830) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 830 has a lot to offer. Basically, it is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on China State Construction Development Holdings here.
Solid track record with adequate balance sheet
830 delivered a bottom-line expansion of 58% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, 830 also outperformed its industry, which delivered a growth of 15%. This is an notable feat for the company. 830 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. 830 seems to have put its debt to good use, generating operating cash levels of 0.35x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For China State Construction Development Holdings, I've put together three essential aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for 830’s future growth? Take a look at our free research report of analyst consensus for 830’s outlook.
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Valuation: What is 830 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 830 is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 830? 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.