Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Should You Consider Singamas Container Holdings Limited (HKG:716)?

In This Article:

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

I've been keeping an eye on Singamas Container Holdings Limited (HKG:716) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 716 has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Singamas Container Holdings here.

Solid track record with adequate balance sheet and pays a dividend

Over the past year, 716 has grown its earnings by 74%, with its most recent figure exceeding its annual average over the past five years. Not only did 716 outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 17% earnings growth. This is what investors like to see! 716 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 716 has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Debt funding requires timely payments on interest to lenders. 716’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.

SEHK:716 Income Statement, June 5th 2019
SEHK:716 Income Statement, June 5th 2019

716's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

SEHK:716 Historical Dividend Yield, June 5th 2019
SEHK:716 Historical Dividend Yield, June 5th 2019

Next Steps:

For Singamas Container Holdings, there are three relevant aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 716’s future growth? Take a look at our free research report of analyst consensus for 716’s outlook.

  2. Valuation: What is 716 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 716 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 716? 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.