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Dongwu Cement International Limited (HKG:695) 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 695, it is a company with great financial health as well as a a great track record of performance. 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, read the full report on Dongwu Cement International here.
Flawless balance sheet with solid track record
Over the past few years, 695 has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did 695 outperformed its past performance, its growth also surpassed the Basic Materials industry expansion, which generated a 63% earnings growth. This is an optimistic signal for the future. 695 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 695 manages its cash and cost levels well, which is an important determinant of the company’s health. 695 seems to have put its debt to good use, generating operating cash levels of 2.05x 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.
Next Steps:
For Dongwu Cement International, I’ve put together three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for 695’s future growth? Take a look at our free research report of analyst consensus for 695’s outlook.
- Valuation: What is 695 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 695 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 695? 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.