Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Haier Electronics Group Co Ltd (HKG:1169) due to its excellent fundamentals in more than one area. 1169 is a financially-robust , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Haier Electronics Group here.
Flawless balance sheet with proven track record and pays a dividend
1169 delivered a bottom-line expansion of 22% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, 1169 also outperformed its industry, which delivered a growth of 7.6%. This is what investors like to see! 1169 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 1169 manages its cash and cost levels well, which is an important determinant of the company’s health. 1169 appears to have made good use of debt, producing operating cash levels of 46.35x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
1169 is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Haier Electronics Group, I’ve put together three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for 1169’s future growth? Take a look at our free research report of analyst consensus for 1169’s outlook.
- Valuation: What is 1169 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 1169 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1169? 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.