In This Article:
I’ve been keeping an eye on China Gas Holdings Limited (HKG:384) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 384 has a lot to offer. Basically, it is a notable dividend payer with a an impressive track record of performance and an optimistic future outlook. 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 China Gas Holdings here.
Outstanding track record with reasonable growth potential and pays a dividend
384’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 55% in the upcoming year. This is expected to flow down into an impressive return on equity of 24% over the next couple of years. Over the past year, 384 has grown its earnings by 47%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 20%, which is an notable feat for the company.
Income investors would also be happy to know that 384 is a great dividend company, with a current yield standing at 1.4%. 384 has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For China Gas Holdings, there are three fundamental factors you should look at:
-
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
-
Valuation: What is 384 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 384 is currently mispriced by the market.
-
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 384? 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.