In This Article:
As an investor, I look for investments which does 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 CK Asset Holdings Limited (HKG:1113), it is a financially-robust company with a an impressive history of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on CK Asset Holdings here.
Flawless balance sheet with solid track record
1113 delivered a bottom-line expansion of 55% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 1113 outperformed its past performance, its growth also surpassed the Real Estate industry expansion, which generated a 50% earnings growth. This paints a buoyant picture for the company. 1113 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 1113 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. 1113 appears to have made good use of debt, producing operating cash levels of 0.62x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
1113’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if 1113’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the real estate industry, 1113 is also trading below its peers, relative to earnings generated. This further reaffirms that 1113 is potentially undervalued.
Next Steps:
For CK Asset Holdings, I’ve put together three key aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for 1113’s future growth? Take a look at our free research report of analyst consensus for 1113’s outlook.
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Dividend Income vs Capital Gains: Does 1113 return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from 1113 as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1113? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.