A Spotlight On Yue Yuen Industrial (Holdings) Limited's (HKG:551) Fundamentals

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Yue Yuen Industrial (Holdings) Limited (HKG:551) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 551, it is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Yue Yuen Industrial (Holdings) here.

Established dividend payer with adequate balance sheet

551 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. 551 appears to have made good use of debt, producing operating cash levels of 0.24x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SEHK:551 Historical Debt, August 30th 2019
SEHK:551 Historical Debt, August 30th 2019

551’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.4%.

SEHK:551 Historical Dividend Yield, August 30th 2019
SEHK:551 Historical Dividend Yield, August 30th 2019

Next Steps:

For Yue Yuen Industrial (Holdings), I've put together three fundamental aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for 551’s future growth? Take a look at our free research report of analyst consensus for 551’s outlook.

  2. Historical Performance: What has 551'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 551? 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.