Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Sino Biopharmaceutical Limited (HKG:1177) due to its excellent fundamentals in more than one area. 1177 is a company with impressive financial health as well as a excellent future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Sino Biopharmaceutical here.
Excellent balance sheet with reasonable growth potential
1177’s outstanding revenue growth of 57% forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This is expected to flow down into an impressive return on equity of 23% over the next couple of years. 1177’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 1177 manages its cash and cost levels well, which is an important determinant of the company’s health. 1177’s has produced operating cash levels of 0.78x total debt over the past year, which implies that 1177’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Sino Biopharmaceutical, I’ve compiled three pertinent factors you should further research:
- Historical Performance: What has 1177’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.
- Valuation: What is 1177 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 1177 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1177? 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.