Why Yue Yuen Industrial (Holdings) Limited (HKG:551) Could Be Your Next Investment

Yue Yuen Industrial (Holdings) Limited (HKG:551) 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 551, it is a financially-sound company with a a great track record high-quality 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 Yue Yuen Industrial (Holdings) here.

6 star dividend payer and good value

551 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 551 manages its cash and cost levels well, which is a key determinant of the company’s health. 551 seems to have put its debt to good use, generating operating cash levels of 0.27x 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. 551’s share price is trading below its true value according to its price-to-equity ratio of 10.19x compared to its industry as well as the wider stock market, making it a relatively cheap stock compared to its peers.

SEHK:551 PE PEG Gauge August 19th 18
SEHK:551 PE PEG Gauge August 19th 18

551’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.50%.

SEHK:551 Historical Dividend Yield August 19th 18
SEHK:551 Historical Dividend Yield August 19th 18

Next Steps:

For Yue Yuen Industrial (Holdings), I’ve put together three relevant factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 551’s future growth? Take a look at our free research report of analyst consensus for 551’s outlook.
  2. Historical Performance: What has 551’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.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 551? 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.