I’ve been keeping an eye on Agritrade Resources Limited (HKG:1131) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 1131 has a lot to offer. Basically, it is a company with great financial health as well as a a strong track record 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, take a look at the report on Agritrade Resources here.
Excellent balance sheet with solid track record
Over the past year, 1131 has grown its earnings by 81%, with its most recent figure exceeding its annual average over the past five years. Not only did 1131 outperformed its past performance, its growth also exceeded the Oil and Gas industry expansion, which generated a 30% earnings growth. This is an optimistic signal for the future. 1131 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 1131 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. 1131’s has produced operating cash levels of 1.45x total debt over the past year, which implies that 1131’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Agritrade Resources, I’ve put together three important aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for 1131’s future growth? Take a look at our free research report of analyst consensus for 1131’s outlook.
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Valuation: What is 1131 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 1131 is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1131? 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.