In This Article:
Crystal International Group Limited (HKG:2232) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 2232, it is a financially-healthy company with a a great track record of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Crystal International Group here.
Good value with proven track record
2232 has a strong track record of performance. In the previous year, 2232 delivered an impressive double-digit return of 8.7% Unsurprisingly, 2232 surpassed the industry return of 6.0%, which gives us more confidence of the company’s capacity to drive earnings going forward. 2232 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. 2232’s has produced operating cash levels of 0.35x total debt over the past year, which implies that 2232’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
2232’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if 2232’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the market, 2232 is also trading below other listed companies on the HK stock exchange, relative to earnings generated. This further reaffirms that 2232 is potentially undervalued.
Next Steps:
For Crystal International Group, there are three important factors you should further research:
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Future Outlook: What are well-informed industry analysts predicting for 2232’s future growth? Take a look at our free research report of analyst consensus for 2232’s outlook.
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Dividend Income vs Capital Gains: Does 2232 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 2232 as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2232? 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.