Why China Molybdenum Co., Ltd. (HKG:3993) Is An Attractive Investment To Consider

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China Molybdenum Co., Ltd. (HKG:3993) 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 3993, it is a financially-healthy , dividend-paying company with a an impressive history of performance. 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, take a look at the report on China Molybdenum here.

Proven track record with adequate balance sheet and pays a dividend

3993 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. In addition to beating its historical values, 3993 also outperformed its industry, which delivered a growth of 38%. This paints a buoyant picture for the company. 3993 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 3993 has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. 3993 appears to have made good use of debt, producing operating cash levels of 0.34x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SEHK:3993 Income Statement Export December 24th 18
SEHK:3993 Income Statement Export December 24th 18

For those seeking income streams from their portfolio, 3993 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.9%.

SEHK:3993 Historical Dividend Yield December 24th 18
SEHK:3993 Historical Dividend Yield December 24th 18

Next Steps:

For China Molybdenum, I’ve compiled three important aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 3993’s future growth? Take a look at our free research report of analyst consensus for 3993’s outlook.

  2. Valuation: What is 3993 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 3993 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3993? 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.

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