In This Article:
A-Living Services Co Ltd (HKG:3319) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 3319, it is a financially-sound company with a strong history and a excellent future outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on A-Living Services here.
Exceptional growth potential with excellent balance sheet
3319’s outstanding triple-digit top-line expansion forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This underlies the notable 20% return on equity over the next few years leading up to 2021. 3319 delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, 3319 also outperformed its industry, which delivered a growth of 12%. This paints a buoyant picture for the company.
3319’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that 3319 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. 3319 seems to have put its debt to good use, generating operating cash levels of 32.9x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For A-Living Services, I’ve compiled three pertinent aspects you should look at:
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Valuation: What is 3319 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 3319 is currently mispriced by the market.
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Dividend Income vs Capital Gains: Does 3319 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 3319 as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3319? 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.