China Resources Medical Holdings Company Limited (HKG:1515) 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 1515, it is a company that has been able to sustain great financial health, trading at an attractive share price. 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, read the full report on China Resources Medical Holdings here.
Flawless balance sheet and good value
1515 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 1515 manages its cash and cost levels well, which is a crucial insight into the health of the company. 1515’s has produced operating cash levels of 1.57x total debt over the past year, which implies that 1515’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. 1515 is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 1515’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the healthcare industry, 1515 is also trading below its peers, relative to earnings generated. This further reaffirms that 1515 is potentially undervalued.
For China Resources Medical Holdings, I’ve compiled three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for 1515’s future growth? Take a look at our free research report of analyst consensus for 1515’s outlook.
- Historical Performance: What has 1515’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 1515? 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 firstname.lastname@example.org.