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Maanshan Iron & Steel Company Limited (HKG:323) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 323, it is a financially-sound company with a an impressive track record high-grade dividend payments, trading at a great value. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Maanshan Iron & Steel here.

Undervalued with adequate balance sheet and pays a dividend

323 appears to have made good use of debt, producing operating cash levels of 0.61x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. Debt funding requires timely payments on interest to lenders. 323’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. 323's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the metals and mining industry, 323 is also trading below its peers, relative to earnings generated. This bolsters the proposition that 323's price is currently discounted.

323 is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.

Next Steps:

For Maanshan Iron & Steel, I've put together three important factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for 323’s future growth? Take a look at our free research report of analyst consensus for 323’s outlook.

2. Historical Performance: What has 323's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 323? 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.