As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Excalibur Global Financial Holdings Limited (HKG:8350), it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Excalibur Global Financial Holdings here.

Flawless balance sheet and good value

8350's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 8350 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Looking at 8350's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. 8350 has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. 8350 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 8350'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, 8350's share price is trading below the group's average. This supports the theory that 8350 is potentially underpriced.

Next Steps:

For Excalibur Global Financial Holdings, I've compiled three pertinent aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for 8350’s future growth? Take a look at our free research report of analyst consensus for 8350’s outlook.

2. Historical Performance: What has 8350'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.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 8350? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.