Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

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 Peking University Resources (Holdings) Company Limited (HKG:618), it is a financially-sound company with a an impressive history of performance, trading at a great value. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Peking University Resources (Holdings) here.

Undervalued with proven track record

618 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. Not only did 618 outperformed its past performance, its growth also surpassed the Real Estate industry expansion, which generated a 6.9% earnings growth. This paints a buoyant picture for the company. 618'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 an important determinant of the company’s health. 618's has produced operating cash levels of 0.34x total debt over the past year, which implies that 618's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

618's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 618's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the real estate industry, 618 is also trading below its peers, relative to earnings generated. This further reaffirms that 618 is potentially undervalued.

Next Steps:

For Peking University Resources (Holdings), I've compiled three pertinent aspects you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for 618’s future growth? Take a look at our free research report of analyst consensus for 618’s outlook.

2. Dividend Income vs Capital Gains: Does 618 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 618 as an investment.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 618? 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.