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Attractive stocks have exceptional fundamentals. In the case of Miramar Hotel and Investment Company, Limited (HKG:71), there's is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Miramar Hotel and Investment Company here.
Flawless balance sheet and good value
71'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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. 71 appears to have made good use of debt, producing operating cash levels of 66.56x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 71 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the hospitality industry, 71 is also trading below its peers, relative to earnings generated. This further reaffirms that 71 is potentially undervalued.
Next Steps:
For Miramar Hotel and Investment Company, I've put together three important factors you should look at:
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Future Outlook: What are well-informed industry analysts predicting for 71’s future growth? Take a look at our free research report of analyst consensus for 71’s outlook.
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Historical Performance: What has 71'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 71? 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.