In This Article:
Attractive stocks have exceptional fundamentals. In the case of ANTA Sports Products Limited (HKG:2020), there’s is a financially-healthy company with an impressive track record and a excellent growth outlook. 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, read the full report on ANTA Sports Products here.
Outstanding track record with exceptional growth potential and pays a dividend
Investors in search of impressive top-line expansion should look no further than 2020, with its expected 53% revenue growth in the upcoming year. This is expected to flow down into an impressive return on equity of 31% over the next couple of years. 2020 delivered a bottom-line expansion of 32% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 24% return to shareholders, which paints a buoyant picture for the company.
2020’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. 2020’s has produced operating cash levels of 2.1x total debt over the past year, which implies that 2020’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For ANTA Sports Products, there are three essential factors you should further research:
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Valuation: What is 2020 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 2020 is currently mispriced by the market.
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Dividend Income vs Capital Gains: Does 2020 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 2020 as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2020? 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.