An Examination Of Bosideng International Holdings Limited (HKG:3998)

Bosideng International Holdings Limited (HKG:3998) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 3998, it is a company with impressive financial health as well as an optimistic growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Bosideng International Holdings here.

Flawless balance sheet with reasonable growth potential

Investors in search for stocks with room to flourish should look no further than 3998, with its expected earinngs growth of 27%, bolstered by its impressive cash-generating ability, as analysts predict its operating cash flows will rise by 93% over the same time period. This is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. 3998 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 3998 manages its cash and cost levels well, which is a crucial insight into the health of the company. 3998 seems to have put its debt to good use, generating operating cash levels of 0.36x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

SEHK:3998 Past and Future Earnings, March 14th 2019
SEHK:3998 Past and Future Earnings, March 14th 2019

Next Steps:

For Bosideng International Holdings, I’ve put together three important aspects you should look at:

  1. Historical Performance: What has 3998’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.
  2. Valuation: What is 3998 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 3998 is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3998? 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.