In This Article:
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on China Resources Beer (Holdings) Company Limited (HKG:291) due to its excellent fundamentals in more than one area. 291 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. For those interested in understanding where the figures come from and want to see the analysis, read the full report on China Resources Beer (Holdings) here.
Excellent balance sheet with proven track record
291 delivered a bottom-line expansion of 27% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 291 outperformed its past performance, its growth also exceeded the Beverage industry expansion, which generated a 4.4% earnings growth. This is what investors like to see! With a debt-to-equity ratio of 16%, 291’s debt level is reasonable. This means that 291’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. 291 seems to have put its debt to good use, generating operating cash levels of 1.49x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For China Resources Beer (Holdings), there are three key aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for 291’s future growth? Take a look at our free research report of analyst consensus for 291’s outlook.
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Valuation: What is 291 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 291 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 291? 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.