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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Sisram Medical Ltd (HKG:1696) due to its excellent fundamentals in more than one area. 1696 is a company with great financial health as well as a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on Sisram Medical here.
Excellent balance sheet with proven track record
Over the past year, 1696 has grown its earnings by 98%, with its most recent figure exceeding its annual average over the past five years. Not only did 1696 outperformed its past performance, its growth also exceeded the Medical Equipment industry expansion, which generated a 23% earnings growth. This paints a buoyant picture for the company. 1696 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 1696 manages its cash and cost levels well, which is a key determinant of the company’s health. 1696’s has produced operating cash levels of 7.48x total debt over the past year, which implies that 1696’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Sisram Medical, I’ve compiled three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for 1696’s future growth? Take a look at our free research report of analyst consensus for 1696’s outlook.
- Valuation: What is 1696 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 1696 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1696? 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.