Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Guangzhou R&F Properties Co Ltd (HKG:2777) due to its excellent fundamentals in more than one area. 2777 is a well-regarded dividend payer with a a great history of performance, trading at a great value. 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 Guangzhou R&F Properties here.

Undervalued with solid track record and pays a dividend

2777 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. This illustrates a strong track record, leading to a satisfying return on equity of 35.0%, which is what investors like to see! 2777 is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, 2777’s share price is trading below the group’s average. This further reaffirms that 2777 is potentially undervalued.

For those seeking income streams from their portfolio, 2777 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 7.7%, making it one of the best dividend companies in the market.

Next Steps:

For Guangzhou R&F Properties, I’ve put together three relevant factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for 2777’s future growth? Take a look at our free research report of analyst consensus for 2777’s outlook.

2. Financial Health: Are 2777’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2777? 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.