As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Ever Sunshine Lifestyle Services Group Limited (HKG:1995), it is a financially-sound company with a strong history and an optimistic 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 Ever Sunshine Lifestyle Services Group here.
Exceptional growth potential with solid track record
1995 is an attractive stock for growth-seeking investors, with an expected earnings growth of 42% in the upcoming year. This growth in the bottom-line is bolstered by an equally impressive top-line expansion over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. Over the past year, 1995 has grown its earnings by 72%, with its most recent figure exceeding its annual average over the past five years. Not only did 1995 outperformed its past performance, its growth also exceeded the Commercial Services industry expansion, which generated a 11% earnings growth. This is an notable feat for the company.
1995 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 1995 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. 1995 appears to have made good use of debt, producing operating cash levels of 18.76x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Ever Sunshine Lifestyle Services Group, I’ve compiled three important factors you should further examine:
- Valuation: What is 1995 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 1995 is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does 1995 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 1995 as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1995? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.