Hengan International Group Company Limited (HKG:1044) 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 1044, it is a financially-robust , dividend-paying company with a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Hengan International Group here.
Solid track record with excellent balance sheet and pays a dividend
1044 delivered a bottom-line expansion of 9.5% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 23%, which is an notable feat for the company. 1044’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 1044 has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. 1044 seems to have put its debt to good use, generating operating cash levels of 0.21x 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.
Income investors would also be happy to know that 1044 is a great dividend company, with a current yield standing at 3.7%. 1044 has also been regularly increasing its dividend payments to shareholders over the past decade.
For Hengan International Group, I’ve compiled three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for 1044’s future growth? Take a look at our free research report of analyst consensus for 1044’s outlook.
- Valuation: What is 1044 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 1044 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1044? 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 email@example.com.