In This Article:
Tianli Holdings Group Limited (HKG:117) 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 117, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Tianli Holdings Group here.
Undervalued with excellent balance sheet
117 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 117 manages its cash and cost levels well, which is an important determinant of the company’s health. 117 appears to have made good use of debt, producing operating cash levels of 0.74x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 117 is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if 117’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, 117’s share price is trading below the group’s average. This further reaffirms that 117 is potentially undervalued.
Next Steps:
For Tianli Holdings Group, I’ve put together three pertinent factors you should look at:
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Future Outlook: What are well-informed industry analysts predicting for 117’s future growth? Take a look at our free research report of analyst consensus for 117’s outlook.
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Historical Performance: What has 117’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.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 117? 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.