China Communications Construction Company Limited (HKG:1800) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 1800, it is a financially-sound company with a great history superior dividend payments, trading at a discount. 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, take a look at the report on China Communications Construction here.
Established dividend payer and good value
1800’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 1800 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Debt funding requires timely payments on interest to lenders. 1800’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses. 1800’s share price is trading below its true value according to its price-to-earnings ratio of 5.06x compared to its industry as well as the wider stock market, which means it is relatively cheaper than its peers.
For those seeking income streams from their portfolio, 1800 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.9%.
Next Steps:
For China Communications Construction, I’ve compiled three fundamental factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for 1800’s future growth? Take a look at our free research report of analyst consensus for 1800’s outlook.
- Historical Performance: What has 1800’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1800? 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 editorial-team@simplywallst.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.