Shanghai Haohai Biological Technology Co Ltd. (SEHK:6826) 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 6826, it is a company with great financial health as well as a an impressive history of performance. 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, read the full report on Shanghai Haohai Biological Technology here.

Excellent balance sheet with proven track record

In the previous year, 6826 has ramped up its bottom line by 22.08%, with its latest earnings level surpassing its average level over the last five years. Not only did 6826 outperformed its past performance, its growth also surpassed the Biotechs industry expansion, which generated a 17.07% earnings growth. This is an notable feat for the company. 6826’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 6826 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. 6826 seems to have put its debt to good use, generating operating cash levels of 9.15x 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 Shanghai Haohai Biological Technology, I’ve put together three fundamental factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for 6826’s future growth? Take a look at our free research report of analyst consensus for 6826’s outlook.

2. Valuation: What is 6826 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 6826 is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 6826? 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 pass 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.