Why Morris Holdings Limited (HKG:1575) Could Have A Place In Your Portfolio

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I’ve been keeping an eye on Morris Holdings Limited (HKG:1575) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 1575 has a lot to offer. Basically, it has a a great history of performance as well as a excellent future outlook going forward. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Morris Holdings here.

Exceptional growth potential with solid track record

1575 is an attractive stock for growth-seeking investors, with an expected earnings growth of 28% in the upcoming year. The optimistic bottom-line growth is supported by an outstanding revenue growth of 64% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. In the previous year, 1575 has ramped up its bottom line by 70%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 43%, which is an optimistic signal for the future.

SEHK:1575 Future Profit February 7th 19
SEHK:1575 Future Profit February 7th 19

Next Steps:

For Morris Holdings, I’ve compiled three key factors you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is 1575 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 1575 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1575? 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.