In This Article:
Agricultural Bank of China Limited (HKG:1288) 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 1288, it is a financially-sound company with a a great track record of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Agricultural Bank of China here.
Very undervalued with flawless balance sheet
1288 delivered a bottom-line expansion of 8.3% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 1288 outperformed its past performance, its growth also surpassed the Banks industry expansion, which generated a 6.9% earnings growth. This is what investors like to see!
1288’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 1288’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the banks industry, 1288 is also trading below its peers, relative to earnings generated. This further reaffirms that 1288 is potentially undervalued.
Next Steps:
For Agricultural Bank of China, I’ve compiled three relevant aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for 1288’s future growth? Take a look at our free research report of analyst consensus for 1288’s outlook.
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Dividend Income vs Capital Gains: Does 1288 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 1288 as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1288? 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.